Greek metal industry to recover next year - report

ATHENS, Sept 22 (Reuters) - Greece's metal industry, worth 5 billion euros a year, will increase sales in 2010 after a slump this year as construction and the world economy gather pace, Greece's top lender said in a report on Tuesday.

Base metals sales are seen falling by between 20 and 40 percent this year, after a worldwide slump in demand led to lower metals prices, National Bank of Greece said in an industry report.

But a pickup in Greek construction after a three-year downturn and rising international metal prices will boost combined sales of steel, aluminium and copper MCU3 by up to 15 percent next year, according to National Bank's estimates.

With about half its production sold abroad, Greece's base metals industry accounts for about 15 percent of total exports, helping the country narrow its wide current account gap that reached almost 15 percent of GDP last year.

Viohalco (VIO.AT), Greece's biggest metals processing group, booked its first loss since 1995 last year, hurt by lower metals prices. (Reporting by Harry Papachristou; Editing by Ingrid Melander)