Alumina Ltd has reported Friday that market outlook for 2010 is far better though still falling short on levels seen in 2008, as chief executive John Bevan told shareholders gathered for a general meet in Melbourne that company outlook this year is much more positive for the market.

Mr Bevan said that market demands will increase by 10 percent this year as he reported of slow recoveries in the US, Japan, and Europe yet with more encouraging growth performances in India and China.

He said that China currently dominates more than 30 percent of the global market and inevitably dictates the world's alumina supply, demand and price.

Mr Bevan said that while most smelters that closed shop during the downturn remained shuttered, metal production and consumption are still en route to normal levels as more capacity will be sourced from the Middle East to meet the mounting demands.

He informed shareholders that since demand and pricing are stabilising, Alcoa World Alumina and Chemicals (AWAC) is poised to produce a record 15.8 million tonnes of alumina and the company's capital expenditures will be slashed once AWAC's growth projects reached realisation.

Mr Bevan said that Alumina, which maintains 40 percent interests on AWAC, is on target with its earning guidance set February this year, but noting that "earnings will continue to be impacted by changes in aluminium price and exchange rates, as explained at the full year results."

He said that the Australian dollar and the Brazilian real exchange rates are cases in point, where the currencies' unusual high levels in 2010 brought negative impacts on Alumina's underlying profits.

More so, Mr Bevan said that power outages further hindered the expansion plans of the company, as he conceded that Alumina still face a difficult and unpredictable market notwithstanding that the company's overall outlook has considerably improved.

And he expressed confidence that "Alumina is well positioned to take advantage of this improved outlook."