Welcome, everyone, here in Oslo, and welcome also to all of you following us on the webcast. We are here to present the 2nd quarter results for 2019, And they will be presented by our CEO, Hilide Osheim and CFO, Eivind Kallovic. And afterwards, we will have time as usual for questions from here in the audience or from webcast and also 1 on ones afterwards. So with that, I'll give the floor to you, Hilde.
Thank you, in a few minutes. Let's again turn to the highlights for the quarter. Underlying EBIT of NOK 875,000,000, which is substantially down from Q2 last year, which was at a level of NOK 2,700,000,000, slightly up from the Q1 with a result of SEK 559,000,000. As I said, ramp up is progressing successfully at Alunorte Pergomenas and Albras. And in a few minutes, I will talk about the ramp up schedule in Alunorte.
Obviously, then to when we have more volumes out of the Brazilian assets, we see that also now influencing the results and in the bauxite and alumina results. We are up on increased production, but mostly offset by lower realized alumina prices. Primary metal is down on realized aluminum prices compared to Q2 last year. Then we had more than 2,500 in all in prices, while we had below 2,200 in Q2 this year. We were hardly hit by the cyber attack in March and still we see financial impact of the cyber attack estimated to DKK 250,000,000 to DKK 300,000,000 in Q2, slightly higher than what we guided on in Q1, slightly DKK 50,000,000 and mainly impacted in Extruded Solutions.
We see now that the downstream result, both in Extruded Solutions as well as in Rolled Products, influenced now by lower margin and volumes, influenced by the cyber attack but now reflecting more softening demand. We have an energy result, which is lower than Q1 based on lower volumes and lower prices. We had an extraordinary high result in Q1, now down in Q2 simply because we are producing less volume and the prices are lower. When it comes to the global supply demand balance, we expect a deficit of around 1,000,000 to 1,500,000 tons, more or less in the same level as we said after Q1. But what we have done is that we have revisited our demand growth expectations coming down from 1% to 3% to 1% to 2% for the full year.
Let me then turn to the ramp up in Brazil and particularly Alunorte. To ramp up a huge refinery like Alunorte is a big task. But the fact that we were having operating all the 7 production line in a rotation system, we were in a position that we could start up from day 1, simply because we had the equipment intact and we had the organization intact. And so the ramp up actually started May 21. To the left on this chart, you see the ramp up schedule week by week.
And you see here that we have been ramping up first towards an annualized level of SEK 4,000,000. Then after some few weeks, we lifted the ramp up further simply because we saw how the press filter technology was working. And here, I would like to again remind the audience that we are installing a new technology, a new press filter technology. And when the embargoes happened in February last year, we were in a commissioning situation. The embargo came in and we had to stop.
And so now we are still in the commissioning phase of the press filter, testing out the new technology and now how it works as we are ramping up to full capacity. And that is also why you see that week on week, there are big variations. We can have a good week, then we realize we get some experience and then we have to fix that and then we come back again and improving on a more stable level. So now the last 4 weeks, we have been operating in the range of 75% to 80%. Actually, the last 4 weeks, we have been able to operate at 80% in a stable way.
But I want the audience to understand that this is not a straight curve. It's about learning how to operate the press filters, how to optimize in terms of maintenance schedule, how to optimize on the cycle time. So we are we stress that we are still in the learning phase. To the right, I show the way forward for Alunorte. We believe that we will be able to stabilize at a level between 75% to 80% during the rest of the year.
Then we have invested in a 9th press filter. What we are working on now is 8. That will be commissioned in September, October, and we foresee that the 9th press filter will be in full operation in November, December. That will add 10% capacity to the press filters. And then we're talking about a range of 85% to 90% compared to full capacity.
But again, I stress that further process optimization will continue to reduce downtime to learn how to use the new press filter and to be able to deposit the red mud in a much drier state than what we had in the past. So that is sort of the insight into the specific ramp up week on week since we have started the ramp up in 21st May. Paragominas is ramping up in line with the ramp up speed in Alunorte. I am also happy to say that we have a good start in Alberas. We are at a 50% level now, started 50% of the sales, and we believe that we will be in have started all the sales at the end of Q3 this year.
So going forward related to Brazil, it's obviously about a safe ramp up of Alunorte Albras and Paragominas. That is our key priority, getting more stability, producing in a good way and to really show the capability of these assets. Then we are fully committed to deliver on the obligations under the technical and social agreement. That is important that we deliver what we say we will deliver, and that is also about building a good, let's say, being a good citizen in the local community. Then we have talked a lot in this audience about the red mud deposits, the DRS1 and DRS2.
As you know, we got the embargo lifted on the production asset, but we're still waiting to have the embargo lifted on using the new deposit, the DRS 2. We're working now together with Semas and with Nesteiro ProbloCo in the same way as we did towards lifting the embargo on the production assets, trying to get a common platform that we together can go and file a petition towards the judge because it's a judge that can lift the embargo on the RS2. We have a good dialogue. We have a good process, but I know that you are waiting for the time line and that is not that we cannot tell at this point. While we are waiting for the embargo to be lifted on DRS 2, we are using the ARS 1.
We believe that the lifetime of the ARS 1 is 1 year, but we have geotechnical assessments that is undertaking now. We need a couple of more months to get more insight into if we can extend the use of the DRS-one longer than 1 year. But having said that, the only long term solution for Radunorte is to use the new DRS2 together with the press filters. That's the long term solution, and that's what we're working towards and then to be able to close the DRS 1 in a good way. Then to the cyber attack.
As I said, we have estimated the financial impact of the cyber attack in Q2, roughly SEK 250,000,000 to SEK 300,000,000, SEK 50,000,000 higher than what we guided on. And most of the effect is within extruded solution. Overall financial effect of Q1, we have reported earlier, NOK 300,000,000 to 3.50,000,000 of which extruded solution, again, was hit the hardest with SEK 250,000,000 to SEK 300,000,000. What I'm happy about is that we see now the end of the effects of the cyber attack. We have now normal production, normal activity in all business units, including Extruded Solutions, even though there are still some manual work and some workarounds.
But overall, we are back to normal. The cost that we talk about is loss of business continuity, and it's the cost of recovery. We believe that we will have limited financial effect going into Q3. And we confirm, as we have done in the previous quarter, that we have a robust cyber insurance with recognized insurers, but we have not accounted for any receipts from this insurance at this point. Let me then move to the global aluminum market and the global supply demand balance.
Let me start by Q2, where we saw a 0.8% demand growth in Q2 this year compared to last year, 1.5% in China and almost a flat development in world ex China. On the supply side, we saw an increase of 1%, more or less all coming in world ex China. If you combine these numbers, we end up with a deficit in the Q2 of roughly 1,000,000 tonnes, which is a normal seasonal development in terms of the balance. If you look at the 12 months rolling average, we see we believe that we will we see an deficit of 1,300,000 tonnes at the end of the second quarter. As I said in this to start with, when we talk about the global supplydemand balance for 2019, we have revised our growth target from 1% to 3% to 1% to 2%, and there are some downside risks related to these numbers.
Coming to the global supplydemand balance for 2019. We normally break that up in world ex China and then China. If we look at world ex China, we have taken down our demand growth from 1% to 2% from 0% to 2% to 0% to 1%. We see a weaker sentiment, particularly in Europe. We see auto production is down, and we also see the insecurity in terms in Germany in terms of the import tariffs discussions towards U.
S, and we also see lower demand from China. We also see that in North America, we see that more scrap is available. So the primary demand primary metal demand is lower. When it comes to the supply growth, we stick to the same numbers as we had in Q1, 2% to 3%. We know about Alba.
We know about the restarts in China in the U. S. We have heard now about Pekangkur and we know about Albras. Albras will not change the number so much because we were out last year as well as first half this year. When it comes to China, we are taking down our demand estimates from 2% to 4% to 1% to 3% simply because that we see that demand numbers are lower.
And we've also taken down our supply estimates from 1% to 3% to 1% to 2%. We see that there are slower ramp up of new capacity, and we see that the government's supply restrictions relating to quota for new capacity is in force. Putting together these numbers, we see that we see a China that is more or less in balance, but then still a deficit in the Western world or world ex China, which ends up with a deficit of the 1,000,000 to 1,500,000 tonnes more to the 1 than to the 1,500,000 tons. The deficit that we have seen in the global supply demand picture in 20172018 has been filled from the inventory. So you've seen that inventory has gradually trending downwards.
I show here to the left the global reported and unreported numbers. We are approaching a level of 11,000,000 tonnes and the number and an inventory days of 60. We see that the inventory days numbers are approaching pre financial crisis of the 50s, which we considered at that time to be a tight market. I have to say to take a cautionary note when we look at these numbers because the unreported is not a physical number, it's estimates. And so there are insecurity about these numbers, but the trend is quite clear.
Then to the right, I show the exports of semis out of China, which is very important to understand the aluminum industry. We've seen that export has increased year on year from China. We saw a growth of 7% of export from China compared to last quarter Q2 last year. Quite a lot of export in April, high exports in April May, but then the export went down 6% compared to May June. We see now that the arbitrage, the difference between the Shanghai price and the EMEA is shrinking, meaning that the incentives to export should be lower.
China is important to follow in terms of the aluminum industry. It's very decisive for the whole sentiment for aluminum. And right now, we are focusing on the demand in China, which also has a bearing on how we look at exports going forward. If you look at the roughly the average of $18.81 in 2nd quarter to $18.18 as an average in Q2, a 3% drop. We have seen that and to the left here on the chart, you will also see the increase in the Shanghai price, which I just commented on, which shrinks the arbitrage and the incentives for exporting out of China.
In the Q2, we have seen prices from starting from around €1900,000,000 to below €1800,000,000, quite a volatile price development, and the average has been more or less on the €1800,000,000 To the right, we see the regional standard ingot prices. Under the Midwest premium, we saw a huge peak when the import tariffs was introduced in the beginning of last year. We have seen that the ingot prices in the U. S. Has trended somewhat down, a little bit also down now in the Q2 simply because of Canada being exempted from the 232.
In terms of the ingot standard ingot prices in Europe, they have been trending slightly up, but more or less on the same levels as we have seen in the second in the last quarters. Alumina prices is also down in Q2, trending downwards throughout the whole first half of twenty nineteen and also into Q3. We're now seeing alumina prices below $300 in July. Continued price volatility. We saw a spike in May simply because there was some environmental curtailments in China.
But then obviously, when the announcement of lifting the embargo in Alunorte, we also saw prices coming down. The refinery costs in general for the alumina refineries are trending downwards on lower caustic soda. But we see that some of the Chinese domestic bauxite or some of the domestic alumina refineries having a local bauxite source is impacting the Chinese competitiveness. China is moving now from being an exporter in 2018, which was quite an extraordinary situation, incentivized obviously by the high prices. Now China has turned into importing limited volumes of alumina, and we will follow that going forward.
Then to the softening downstream demand going more into our markets. If we look at extrusion to start with, we see weakening demands in North America, growing from when I showed this picture for Q1, we talked about a growth rate of roughly 2.5% in North America. Now we're looking at more 1%. In Europe, we talked about in Q1 a growth rate of 1%. Now we have now we talk about 0.5%.
Percent. A couple of comments to 2 segments. The building construction industry in the North America or in the U. S. Has been very strong over the last years, but now we see a flat development growth rate of 0 in Q2 compared to Q2 last year, meaning that we see weaker demand in this segment and in particular in the residential area.
In Europe, we see weakening demands in transport and automotive, very much the same comment that I gave to the global supply demand and the demand in Europe. Germany is seeing reduced car production and the insecurity reflected in the discussion about import tariffs towards U. S. As well as the demand outlook for China, where Germany is, of course, a big producer towards the high end the costly cars. In terms of Rolled Products, there we see more or less the same growth rates as we talked about in Q1.
But there are a couple of also important areas to follow. It's obviously about transport and automotive with some of the same comments that I had on extrusion. But here, we see a higher growth rate still because of the substitution effect towards using more aluminum in cars. Then we see some interesting growth rate in packaging in particularly in Europe. The packaging segment in Europe represents 50% or the can market represents 50% of the Packaging segment.
And here, we see a 5% growth rate towards last year. And that is not only because people drink more beers in difficult times, but it's more also the substitution effect towards bottles. So we see that cans are getting more into new and more and more applications. The same effect we see actually in the U. S, even though and here also cans are important or 75% of the packaging market is about cans, and here we see still a good growth of 1.3% in the North American market.
So there are spots where we see weaker market sentiment, but still growth overall growth in the 2 segments. Raw material cost is important, which influence our numbers. The top line is about raw material costs for the primary part. And then on the lower line, it's about raw materials for the alumina. We saw big increases in carbon costs in 2017, 2018 simply because of high growth rates.
We see that, that's come down, and we see that relates both to petrol and coke and pitch. And we see that, that is coming down and are also at the level with the red or the green dot is the spot market today. On the alumina, we see alumina prices coming down, and we expect that we also see that into the Q3. On the alumina refinery side, caustic soda has come down at high from high levels and more stabilized now. Fuel oil has also come somewhat down and also steam coal substantially down and are more or less at the level in the spot market today.
Here, I would like to stress that when we see these numbers, we have to take into account that we see a lag of at least a quarter before this comes into our numbers. And I should also mention that these are commodity raw materials that will also influence our the whole industry. But our costs are coming down. And to the left, we see the cost development in alumina and to the right, we see the cost development in primary. If I take alumina first, we see that cost has come down in Q2 compared to Q1.
That is primarily related to Kvaersek Soda, but it's also related to the fact that we are now have higher production than we had in Q1. Costs are substantially lower than Q2 last year simply because at that point, we had to source expensive alumina to be able to keep production going towards Boxita Alumina's customers. When it comes to primary, we see that cost has come down from Q1 to Q2, primarily related to alumina. Here, we expect more to come also in Q3, somewhat lower also in carbon. But we see that the margins compared to Q2 last year is way below what we achieved in Q2 simply because, as I said to start with, we had much higher oil prices in Q2 last year than we have had this quarter.
Then I would like to make some comments to Rolled Products. A weak result in Rolled Products, and we also see a sales reduction driven by softening markets. We have talked about this before. 2nd half versus second half last year is down 2%, primarily in the foil and litho business. We see the same picture for Q2 versus Q2 last year, primarily litho and foil.
And as you know, in terms of the foil business, we have already started on restructuring that business. We have taken down one line already. And we in the strategic review that we are that are well underway now, we are looking into more in order to improve this situation. There's fierce competition from China. We have not good enough performance, and we see that sales are coming down.
In Q2 versus Q1, we also see the weakening of the automotive market, where we see that we have lower volumes in the automotive market than we had Q1 last year. Not a good situation in Rolled Products. That is why we have addressed it in our strategic review, and I will come back to more details about that when we meet hopefully on the Investor Day on September 24. On Extruded Solutions, on the opposite, I'm very happy to see how Extruded Solutions is working year on year according to their volume value over volume strategy. We see here on the slide the net added value per kilo improving year on year in each of the business units.
I'm very happy to see how Extruded Solutions are able to work in the local market to come forward with new solutions, new products in order to achieve value creation after the process. And here, I would like to give credit to Egil and his team in Extruded Solutions. And if you exclude the cyber attack effect in Extruded Solutions, Extruded Solutions have a good quarter in 2nd quarter as they had last quarter. So that's a real positive part of our Q2. I would also like to give an example of how Extruded Solutions has our continuous reviewing the overall portfolio.
Mean, we have more than 100 assets and extruders within Extruded Solutions. And the management of Extruded Solutions continues reviewing to see how we can optimize and streamline and make the portfolio even more robust, also now taking into account the softening demand in several markets. And we have already announced several restructuring efforts. In the UK, We closed down a UK fabrication and automotive site in the UK, transfer business to other plants in the UK. We are closing a building system warehouse, transferring business to other warehouses in the UK.
And we have announced the closure of a Spanish extrusion plant simply to optimize the Iberian area. This has a positive business case. This will add to the target that we have in the Extruded solution to improve the EBIT by 10% every year. And this is an important part of this continuous effort to improve their business of the Extruded Solutions portfolio. We have included some restructuring costs and an impairment of SEK 28,000,000 booked in as items excluded, and I guess Eivind will comment on that in his presentation.
Some few words about the energy market. We have seen lower prices both in the Nordic segment as well as in the Continental. In the Nordic, we've seen improved hydrological balance, which is snow and water. In the Nordic in the Continental, we see lower fuel and coal prices. When it comes to the hydrological balance in the Nordic area, we are now we now see a balance which is 1 terawatt lower than normal.
We saw in Q2 last year, we had 15 terawatt lower than normal. And in Q1 this year, we had roughly 7. So the hydrological ballast is better, which is influencing the prices in the Nordic area together with also more wind coming into the market. And that is also the reason why we see the results in energy, which was very high in Q1 based on higher production and higher prices, while we now have lower volumes and lower prices. I talked a lot about now a weaker sentiment and weaker demand in some of our product segments.
I would like to end my presentation on a positive note in the sense of showing an example of a product area that has traction in the market, which is the product that we launched the brand that we launched a few years ago on the Capital Markets Day, this 75R, which we now talk, called Circle 75R. The picture I have behind me here is a picture from the and Prokal, which is the largest development area in Norway these days, which are looking where they have been looking at materials relating to sustainability. And our products, the Circle 75R, can actually meet the building and construction companies' search for material that have a low carbon footprint. And we see more and more interest from this material from building and construction customers. And we are very happy as Hydro to be the only company that can provide this material based on end of life postconsumed scrap that is produced in primary metal, that is promoted and sold in extruded solution through the building system brand, Vikona, which is the system supplier to the builders and to the architects.
And this is a product that we can trace and that we have a certificate that is certified by a third party that is certified by the NVEG. And we believe that this will be an important part of our differentiating us from the rest of the industry by coming forward with low carbon footprint brands. We see that Europe, the Europe commissioning have set out targets of requiring that all new buildings within 2,030 should have a net zero carbon emission footprint and all buildings by 2,050. And we believe that an example like Circle 75R can enable builders and architects to meet demanding sustainability targets. So this is an exciting journey, which is about our agenda, lifting profitability, driving sustainability in order to differentiate ourselves from the rest of the industry.
Before I close my remarks, I would then like to give the word to Eivind to go more into the details of the actual numbers for Q2.
Thank you, Hilde, and good morning from me as well. And then I will take you through the financial results for the quarter. Now if we start with the high level results development for the quarter. In the second quarter, we delivered an underlying EBIT of SEK 900,000,000, which is significantly down from the SEK 2,700,000,000 we delivered in the same quarter last year. Most of the reduction in the results is explained by a decline both in the realized aluminum price as well as a decline in the realized alumina price.
14% lower aluminum prices measured in dollars took the results down by some SEK 1,400,000,000. We saw a 15% effect in particular within Extruded Solutions. This had a negative effect of SEK 300,000,000. On the other hand, the stronger dollar against all our major cost currencies support our earnings with SEK 500,000,000 in this period. And then finally, significantly lower power production in energy as well as a combination of several factors, including loss on excess power sales in Alba's, cyber attacks, attack effects on corporate costs offset the positive effects we had on ramp up in Alunorte and Paragominas and netted out to a negative SEK 200,000,000.
If we then compare the results to the previous quarter, the results improved by SEK 300,000,000 from SEK 600,000,000 in Q1, up to SEK 900,000,000 now in the second quarter. The upstream results improved largely, driven by relief in the raw material costs and some reduction in fixed costs, altogether with an effect of SEK 500,000,000. The further reduction in alumina cost for primary metal alone amounted to SEK 300,000,000 while carbon, bauxite and caustic costs in B and A amounted for the remaining 0.2%. The ongoing ramp up in Alunorte and Paragominas following the lifting of the embargo in May has been progressing well and contributed positively to the result. The higher upstream volumes, in particular from Alunorte, lifted the volumes with roughly SEK 200,000,000 in this period.
These positive developments were offset by a 3% decline in realized alumina prices and a 2% decline in alumina prices, taking results down by roughly SEK 200,000,000 Results in energy down by SEK 0.3 1,000,000,000, primarily driven by significantly lower production this quarter, as Hilde has mentioned. Finally, improved results in Extruded Solutions. Strong results from the remelters, which was partly offset by the weak performance we see in Rolled Products, took added roughly SEK 200,000,000 to the results, leaving us at SEK 900,000,000 for the quarter. If you then take a quick look at the key financials, revenues are down roughly SEK 2,000,000,000 compared to the Q2 of 2018. This is driven by declining prices, partly offset by the positive currency developments.
But we also see a reduction in volumes in all business areas with the exception of B and A, where we see the positive impact from the lifting of the embargo and the start of the ramp up. This quarter, we have excluded from a reported EBIT of SEK656,000,000, a loss of SEK219,000,000 as items exclude, which I will get back to on my next slide. With that, we end up with an underlying EBIT of SEK 875,000,000 interest rate expenses, which has gone up now subsequent to the bond issue we did some months back. The remaining part is mainly an unrealized foreign exchange loss of roughly NOK 450,000,000 and this reflects the weaker forward rates, NOK versus euro, having an impact on the embedded derivatives in the euro denominated power contracts we carry for Norwegian portfolio. As a result, the income before tax in Q2 is marginal at SEK 8,000,000 negative, significantly down from the SEK 2,500,000,000 we saw in the same quarter last year.
We have income taxes of SEK 183,000,000 and this, of course, reflects then the power surtax we pay on our energy results in this period. Gives us a negative income of negative net income of minus SEK 190,000,000, again down from positive SEK 2,100,000,000 last year. Online net income, positive SEK 281,000,000 and consequently, the underlying EBIT is then also down to SEK 0.19 per share. If we look at the items excluded, we did exclude a loss of SEK 219,000,000 from the reported EBIT this quarter. As usual, we do exclude the normal timing effects.
This quarter, it netted out to roughly SEK58 1,000,000. But in addition, this quarter, we have several onetime effects. The biggest one being the impairment and rationalization charges within Extruded Solutions amounted to SEK228,000,000 200,000,000 in restructuring charges, SEK28 1,000,000 as an impairment given the restructuring program we are currently running in Extruded Solutions. We also made a small change in the tuck and TC arrangements, adding another NOK 14,000,000. We also have NOK 35,000,000 in transaction effects related to the acquisition of the outstanding 50% of the shares in Technal Middle East this quarter.
We then move into the individual business areas, starting with B and A. The underlying EBIT for the business area improved from $364,000,000 in Q2 'eighteen to $415,000,000 this quarter. These improvements reflect the ongoing ramp up of both Alunorte and Paragominas and has so far also been progressing faster than what we had expected. The higher alumina production lifted the results with roughly SEK 200,000,000. We also see positive effects from scale effects on fixed costs, reducing that with roughly $3 per tonne already in 2nd quarter.
At the same time, we have also higher bauxite volumes as well as lower production costs in Alunorte in Paragominas, lifting the results with another SEK 120,000,000. Also on the currency side, we see a 9% weaker BRL versus the dollar. This has a positive impact on the BRL denominated costs amounting to roughly SEK 150,000,000 in this period. On the other hand, we saw a 15% decline in realized alumina prices, taking down the result with SEK 400,000,000 between the quarters. Now if we look into the next quarter, we will continue to ramp up Alunorte as well as Paragominas at the same speed.
And this will both have a positive effect both on volume, but certainly also on cost per tonne. As Hilde has explained before, we do expect to run-in the range of 75% to 85% on the nameplate capacity with 8 price filters. We will commission a 9th press filter in September, October, which would then take us up to the range of 85% to 95% during 2020. Fixed costs, if you look at them in absolute terms, they will be higher when we go into Q3. But when you look at those in dollars per tonne produced, we will see a continued improvement in Q3.
And as a reminder, please remember that roughly 15% to 20% of the cost in Alunorte is deemed as fixed and 65% to 70% of the cost in Paragominas is deemed fixed. We do also expect to see some raw material cost relief in the Q3, in particular when it comes to caustic soda. We turn to Primary Metal. We did see a year of 'nineteen. Now by far, the largest result explanation here is the 14% reduction we've seen on realized metal price, taking the results down by roughly SEK 1,300,000,000.
In addition to this, we also had a loss on the sale of excess power in Albras amounting to roughly SEK 200,000,000 for the Q2. We also see on production and sales volumes also gives which are lower, also gives a negative effect of roughly SEK 200,000,000. The raw material costs between those two periods have been relatively stable. We did see a stronger dollar versus our major cost currencies having a positive impact of roughly NOK 300,000,000. Now if we look into the next quarter, we are making progress on the Albras ramp up.
We have started roughly 50% of the curtailed cells in the middle of July. We expect all cells to be restarted at the end of Q3. And as such, we expect to see higher production volumes in that quarter as such. Also important to mention that as we're ramping up production, we will have less excess power to sell in Brazil in Q3, so we shouldn't see any significant impact on excess power sales in that quarter. On the price side, we have sold roughly 55% of Q3 production forward at $17.85 per tonne, indicating that the average realized price for Q3 will be somewhat lower than what we saw in the second quarter.
On the premium side, we've also booked roughly 55% at $3.50 per tonne, meaning that we have higher proportion of standard ingot sales, which haven't been booked, indicating that the price range or the premium range should be to the tune of $300 to $3.25 somewhat lower than what we saw in the second quarter. On the cost relief side, we do continue to see raw material cost prices coming down. We do expect that the alumina price alone should give us a relief of roughly SEK 200,000,000, SEK 250,000,000 for the second quarter. And then that carbon and energy is going to give us an additional SEK 200,000,000 in cost relief for the 3rd quarter. We turn to metal markets.
They delivered an underlying EBIT of 2 performance points from the remelters, driven by high margins, both in the European market, but also in the U. S. Market. In addition to this, we also saw strong contribution from the sourcing and trading activities within metal markets. Now if we exclude the SEK 52,000,000 from the negative currency and inventory valuation effect, The result was SEK 352,000,000, up from SEK 224,000,000 in the same quarter last year, significantly higher than SEK 125,000,000 or SEK 500,000,000 on an annual basis that we are guiding on.
We then look into the next quarter. We continue to see good market conditions for the remelters. There's still good availability of scrap. So we expect another quarter with strong performance from the remelters, both in the European market as well as in the U. S.
Market. But as always, do remember that the trading results and currency and valuation effects in metal markets are volatile and can change these numbers pretty quickly. Looking at Rolled. Rolled delivered a weak result of SEK 75,000,000 in the Q2 of 'nineteen, which is significantly down from the SEK 212,000,000 we saw last year. The results from the rolling mill operations declined mainly due to unfavorable product mix in this period, but also due to lower volumes giving a softer market sentiment, in particular within the foil and lithographic sheet market.
In addition, we continue to see labor inflation. So also personnel cost is up this quarter compared to the same quarter last year. When it comes to the smelter, the results declined primarily due to the lower all in realized aluminum prices between Q2 last year and Q2 this year. If we look into Q3, we are seeing, again, somewhat softening growth rates in some of our markets in addition to continued margin pressure within some of our key product areas. And then not surprising, this potentially will then continue to have a negative impact on the earnings potential and earnings level within the rolling industry.
When it comes to the noise smelter, do remember that always that the results here are driven by the raw material price development as well as the LME price development. We do expect also here to see some cost relief in Q3, but also here we do expect to realize lower average LME prices in the Q3 compared to what we did in the second quarter. Turning to Extruded Solutions. On the underlying EBIT as reported, we do see a decline from SEK 957,000,000 in the 2nd quarter to SEK 772,000,000 this quarter. The main driver for the result decrease is really the impact from the cyber attack, which we estimate to be between SEK 150,000,000 to SEK 200,000,000.
Now if you adjust for this, you would see that the results for the Q2 of 'nineteen is pretty much in line with what was a record strong second quarter result in 2018. If we look at this from a volume perspective, we see a 7% decline in volume. This is more than what we ascribe to the cyber effect, indicating that some of the markets are becoming somewhat softer, in particular in the European market. That also makes me very happy to say that in the softer market quarter, we'd improved performance on the margin side. If we look into next quarter, we expect very limited effects, if any, from the cyber attack as we have seen operations returning to normal in all areas.
On the market side, we do continue to see growth in most of our markets, but at a lower pace compared to what we saw in 2018, in particular in Europe, but also a flat relatively flat market on the building construction in the U. S. But remember that the building construction market in the U. S. Are at the very high level as we see this.
In energy, we saw a result that more than halved from SEK 417,000,000 in the Q2 of last year to SEK176,000,000 in the Q2 of 'nineteen. This is primarily driven by production. We have 20% lower production, which leads to significantly less net spot sales into the market. And the effect of this is roughly NOK 250,000,000. The remaining delta is a combination of somewhat lower commercial results, but also a little bit lower price picture.
If we look into Q3, we will continue to expect to continue to see relatively low production figures for the Q3 as we move production into the Q4 and the winter months as we have stronger price signals in that period. But again, please remember that the production estimates in energy can change very quickly based on hydrological changes as well as price signals for different periods. Also on a price perspective, so far in Q3, the NO2 prices has come down from the Q2 levels that we saw of roughly NOK 360 per megawatt hour down to roughly NOK 3.18 per megawatt hour. Turning to other eliminations. This netted to a negative SEK 258,000,000 this quarter, which is really compared to similar levels that we saw of SEK229,000,000 last year and SEK 261,000,000 in the Q1 this year.
The other line really consists of corporate costs in addition to costs in holding companies as well as industrial insurance. This quarter, we had a cost of SEK 253,000,000, roughly SEK 100,000,000 higher compared to last year and somewhat above our annual guidance. The increase in corporate this time is really driven by the cyber attack costs. And here again, we don't expect any significant impact in Q3, which should take us back down to our guided level of SEK 175,000,000 to SEK 200 1,000,000. Then finishing up on my part with a look on the net debt since last quarter.
Overall, our net debt position increased with roughly SEK 3,000,000,000, which basically reflects the dividends we paid to our shareholders in May this year. That position of SEK 12,100,000,000. We've generated SEK 2,900,000,000 in underlying EBITDA for reasons I've been through already. We then had a release of SEK 1,300,000,000 in net operating capital. And please remember that this is normally a quarter where we do build capital and not release it.
Part of the explanation is a reduction in prices, which of course has net operating capital level, But also, it is partly due to our improvement efforts trying to take back the safety stock buildup we had in 2018 on the back of the Alunorte embargo as well as the result or the threat of result sanctions. And the release of working further working capital will, of course, be high on the agenda also in the quarters to come. We've had a negative effect, SEK 1,600,000,000 in taxes and other, roughly SEK 1,000,000,000 is tax and SEK 600,000,000 is adding out SEK 1,000,000,000 in CapEx and then we will come back with an updated figure on September 24. Other includes mainly currency translation effects on cash and debt as well as some other minor adjustments. Let me finish off by saying also just one comment on net adjusted debt.
This increased with roughly SEK 3.2 1,000,000,000, which reflects the increase in net debt that I just discussed, meaning that the net adjusted debt ends at SEK 33 300,000,000 at the end of the second quarter. And with that, Hille, I'll give the word back to you.
So to summarize then the Q2. We have focused on the positive side that we are back in Brazil relating to the ramp up of the production sites. We see the tail now of the cyber attack that hit us hard in March. But the results are unsatisfactory. And we as a management, we our focus now is to work on what we can influence in this situation, taking also into account that the macro sentiment now is weaker, which adds to the challenge.
And we have, as many of you know, launched a forceful improvement agenda, which we the whole organization is working on right now. It's about safe and efficient operation that's always key priority. We simply have had also too many incidents in the past and which we need to work on in terms of having a robust and stable operation. That's the backbone of the company. Then obviously, we need to fix Brazil.
We need to come back in full operation and demonstrate that these assets, which are in the 1st quartile on the cost position, is really creating values for Hydro. Then we are now well into the strategic review and the restructuring of our products. It's unsatisfactory, the performance we have had over a long time, and we need to address that forcefully. Then we have engaged the whole organization. I'm really proud of the Hydro organization.
We mobilize when things are difficult. And right now, the whole organization is working on revisiting the improvement agenda. As we know, we have been falling behind simply because we had the embargoes in Brazil, and we will come back on new forceful improvement efforts, which will come into on the Investor Day. Then we will focus on strict capital discipline in the situation we have now and also the capital allocation framework going forward. We talk about lifting profitability, driving sustainability.
We believe that with our position in Hydro, with the low carbon position we have based on the primary part, which is based on renewable power, we have a lot of capabilities, which we now want to explore into more recycling and promote low carbon brands.
Thank you very much, Hilde and Eivind. And we open open a question here in the back.
Yes. Good morning. Eivind Weddink, DNB Markets. Two questions. One first for Eivind.
The capital release or the working capital release of SEK 1,300,000,000 in the quarter, how much more capital can you release over the next 12 to 15 months? After I guess this comes from a normalization of Alunorte and the result situation?
And of course, Hilde will address this more on September 24. But what we've said in 2018 is that we had, let's say, an online build of roughly NOK 4,000,000,000 in operating capital on the back of the Alunorte embargo and under the threat of the result sanctions. So obviously, we are trying to get that back. The SEK1.3 billion, I think you can split roughly in 2. Half of it is price related and half of it is actually getting the underlying improvement in place.
Thank you. And then I guess for Helio, on the cost curve, how does the cost curve look now in alumina and aluminum, I. E, how many producers are currently loss making, if you just take the current price and raw material costs? And also on Arenorte, after you have installed the new press filter technology, where would that asset be on the cost curve?
I think the last part I will come back to on the Investor Day, so to make sure that we have a better target how the press filters will develop. I leave I think I'll leave the alumina question to you, Eivind.
Thank you. I think the alumina price today is currently around 2.96 dollars which means that we have we came for a situation where basically everybody was making money on alumina when it was around 3.50 dollars or so into a situation today where you can argue that 10% to 20% is losing money. We're also getting into the more normal situation where we're starting to see exports of Western world material going into China, and then we'll see what kind of adjustments they will make. When it comes to the cost position, if you allow me just to make one comment, Alunorte even today is very favorable based on the cost curve, very much to the left on the cost curve. Obviously, as we get the production back up to 75% to 85%, 85% to 95%, you get fixed cost dilution, which will move you even further to the left of that cost curve.
So it's a well placed asset.
Question here from Hans Erik from
the first one. Yes.
Hans Seik Jakobsen, Mordea. Within Extruded Solutions, you're guiding a weaker European markets. Is that entirely due to weaker economic growth? Or do you see some increased exports from China within this area as well like we are experiencing within rolled?
Well, there is a difference between rolled product and extrusion because the extruded business is a more local business. So the metal doesn't travel that much between this region in extruded because that is more working with the local customers on a continuous basis. So from that side, it's different between the Rolled Products and Extruder. And in Extrusion, we appointed to the automotive industry, which is more general in all aspects in the automotive industry and there's insecurity.
So it's general market weakness then, not increased imports. And then back to Brazil. When do you expect cost to come down to the pre embargo levels?
Yes. It's based on it's obviously based on how fast we can return to normal production because that has bearing on the cost per tonne. But when our raw material prices come down at the level of that we had in Q4 2017, we should be in as good situation as we were at that time.
Thanks.
Okay. Thank you very much. Any other questions here? I know we have still some questions from the webcast.
Yes.
We have a question from Siedar Ekblom in Bank of America Merrill Lynch. Would you consider curtailing loss making smelters in primary metal?
Well, what we have been working on in the primary smelter portfolio over several years is to make sure that we have a robust cost position also to stand through periods where LME is low. It's costly also to curtail. And with the position that we have in the primary smelter portfolio today based on renewables, we don't have any plans to curtail primary smelter capacity.
Then a question from Daniel Major in UBS. Are there any reasons why unit costs for primary should not return to the level seen in 2017?
We believe that when if you have the same raw material price level as we had in Q4 2017, we should come back to these levels.
There's a cyber attack impact of around SEK 600,000,000. Are you expecting the vast majority to be recovered by insurance? And can you give some idea on the timing for the insurance compensation?
I'll leave that to you, Avin.
Thank you. As in previous quarters, I will not comment specifically on amounts we have insured. We have said in the past that we have a robust cyber insurance and we still stand behind that. We do expect to not necessarily see that all insurance compensation comes in the same quarter, actually maybe spread over several quarters. We do expect to see the first proceeds of insurance to come in, in the Q3.
Now the significance of that, we will have to come back to when we close the quarter.
Another question from Daniel Major. You highlighted weakness in North America construction and broader slowdown in growth in key extruded product business segments. Do you see risks to the forecast of 10% growth in underlying EBIT that you provided earlier?
I think when we talk about weakness on the building construction market in the U. S, it is basically zero growth, but it's zero growth from a very high level. So I wouldn't necessarily call it weak. We continue to see good development in Extrusion Solutions. Obviously, Q1, Q2 is impacted by the cyber effects.
So if you adjust for that, you continue to see good performance. And Extrusion Management and Hydro Management is also confident that we will continue to deliver the improvements going forward also on the 10% growth.
Then a couple of questions from Janis Masvoulis, Macquarie. Will you be able to reach full capacity with 9 press filters? Or do you need to invest in the 10th press filter to reach full capacity? If so, are you willing to invest more in today's environment of weak alumina prices?
Well, at this point, we focus on optimizing based on the first 8th and then 9th. And then we will see how far we get by learning the technology, learning the equipment, learning how to optimize the maintenance structure, the cycle time. And so it's too early to say talk about a tent filter.
Okay. That was it, Stian. Anything else here from Oslo? No? Then we will leave it with that and say thank you very much for joining, and see you at the Investor Day on September 24.
Thank you.
Thank you.