Reuters reported that Norwegian aluminium group Norsk Hydro hopes to pay an unchanged dividend on 2012 earnings as the global market continues to recover from a slump.
The market outside China could grow 2% to 4% next year after this year's 2% rise as demand recovers, producers reduce capacity, and bloated stock levels are reduced.
Big producers cut output after aluminium dipped below USD 2,000 per tonne at the start of the summer helping it recover above USD 2,200 before some idled production was restarted leading prices back down toward USD 2,000.
Our ambition is to maintain the absolute dividend level for 2012 confirming market expectations for a dividend of 0.75 crown in line with the payout on 2011 earnings.
Hydro said that although aluminium has seen the fastest-growing demand among base metals we also saw strong growth in new capacity, resulting in low prices and inadequate returns.
Aluminium, used in applications from construction to automotive and packaging is still gaining in popularity over metals such as copper and steel because of its light weight and resistance to corrosion.
Mr Svein Richard Brandtzaeg CEO of Hydro said that that meant the long term outlook for the metal was positive and it expected global growth of 4% to 6% annually over the next 10 years. China, the largest consumer and producer of aluminium accounting for about 40% of the global market was expected to continue to grow faster than the rest of the world and account for almost half of aluminium consumption in 2022.
Mr Brandtzaeg said that US and emerging markets had improved while Europe now about 15% of the global market was still weak. We expect Europe to remain weak in the months to come and maybe the whole of 2013.
