Norsk Hydro expects recovery of aluminum

The global aluminum production is expected to continue its recovery this year after bottoming out in the course of 2012, Norsk Hydro said on Tuesday on the occasion of the publication of quarterly figures exceeded expectations.

The Norwegian group, one of the largest aluminum producers in the world, said this year anticipate global demand outside China primary aluminum increased by 2% to 4% against a 1% rise in , 2012.

Over the last three months of last year, the operating profit of Norsk Hydro fell 89%, to 138 million kronor (19 million) due to the sharp drop in the price of aluminum on the period. Financial analysts polled by Reuters on average expected 96 million.

"I believe that market participants react more positively to these figures," said Hans-Erik Jacobson, an analyst at Swedbank First Securities.

Norsk Hydro said its earnings should improve from one quarter to another, noting that the company has already sold 60% of its production in the first quarter at a price of 2,050 dollars per tonne, against a price of 1,940 dollars per tonne in the last three months of 2012.

The price of aluminum is treated to a level slightly above $ 2,100 in early trading Tuesday after falling under 1850 dollars last year.

This assessment is mainly due to the improvement in the global economy.

According to analysts, if the price exceeds $ 2,500, the market will begin to consider the installation of new capacity.

Early January, Alcoa had forecast a rise of 7% of global aluminum demand after an increase of 6% in 2012. The American group also indicated that he continued to anticipate a doubling of demand over the decade to 2020.

Norsk Hydro has maintained its dividend per share 0.75 crown.

Potential increase as the company is, however, limited in the short term, analysts note, due to expire this spring, a period of "lock-up" on a 22% stake in Norsk Hydro owned by Brazilian mining giant Vale.