Pål Kildemo, the Executive Vice President and Chief Financial Officer of Norwegian aluminum producer Norsk Hydro, warned that the aluminum industry was severely injured by high interest rates and rising construction costs, thereby decreasing the demand by 50% from the construction industry in some EU countries and regions, like what they were suffering during the COVID-19 epidemic period.

The recovery in the aluminum demand wasn’t expected in the first half of this year, Kildemo said, adding that there are few positive signs in the short term and the demand in the second half of the year will not rebound if the interest rates remain high. He foresaw that the demand in Europe and North America would have a year-over-year decrease of around 10% in the first quarter of this year.