Feb. 27 (Bloomberg) -- Norsk Hydro ASA, Europe’s third-largest aluminum producer, fell the most in almost two weeks in Oslo trading after an analyst report predicted a worsening of oversupply in the global aluminum market in 2012.
The shares fell as much as 3.2 percent, the most since Feb. 14 and were down 2.3 percent to 33.45 kroner as of 1:14 p.m. in Oslo. The Stoxx 600 Basic Resource Index fell 0.8 percent. The stock has risen 21 percent this year.
Global aluminum will exceed demand by 419,000 metric tons this year, increasing from 388,000 tons in 2011, Macquarie Group Ltd. said in a report yesterday.
“Announced cuts in production have come thick and fast in recent months although it is hard to distinguish between ‘capacity’ reductions and actual production reductions,” the analysts wrote.
The gap between surplus production and demand in the global aluminum market is “tightening,” which should have a positive impact on prices, Norsk Hydro Chief Executive Officer Svein Richard Brandtzaeg said in a Feb. 16 interview.
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