ALUMINA has increased first-half profit by 53 per cent as the aluminium maker says demand for the metal continues to grow.

Net profit rose to $US67.7 million for the six months to June 30 from $US44.2m a year earlier, Melbourne-based Alumina said in a statement today.

The company's shares reacted negatively to the result, however, falling by more than 6 per cent in early trade, or 11.5 cents, to $1.785. The broader market was down a little more than 1 per cent.

Alumina has a 40 per cent stake in US-based Alcoa World Alumina and Chemicals (AWAC), the world's largest alumina business with 17 per cent of global production.

Alumina will pay a fully franked US3 cents interim dividend, up from US2c in the prior first half.

The results were due to a strong performance in industry prices and aluminium demand, including increasing use of spot and index pricing for alumina contracts, the company said in a statement today.

 

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Underlying earnings increased to $US78m compared to $US22m in the prior corresponding period, while earnings before interest, tax, depreciation, and amortisation was $US166m, up from $US95m in the prior first half.

In the past decade, aluminium demand had outgrown all metals with the exception of steel, Alumina chief executive John Bevan said.

"Much of this growth has been driven by Chinese industrialisation, with China now established as a major consumer and producer of aluminium," he said in a statement.

Alumina is the raw material smelted to produce aluminium.