08 MAY 2014www.mineweb.com
Aluminum oversupply to make 2014 tough year - Chinalco
Edited by : AL CIRCLE
1 min read
Aluminum Corp of China Ltd (Chalco) on Tuesday booked a net loss for the first quarter that was twice as wide as the same period a year earlier, as severe oversupply of the metal pushed down prices.
China's largest producer of aluminium, in a filing to the Hong Kong stock exchange, reported a net loss of 2.16 billion yuan ($345.43 million) for January-March, compared with a loss of 975 million yuan a year prior.
Chalco sells the aluminium it produces mainly in the Chinese market, where spot prices fell 11 percent in the three months to March 31.
Chalco swung to a full-year profit in 2013 but said oversupply and falling prices would make for a challenging 2014. On Tuesday, the company said it expects to record a loss for the first half of 2014.
Chinese aluminium smelters are likely shut about 2 million metric tonnes of operating capacity in the coming months to limit losses amid falling prices and dwindling government support, industry executives told Reuters.
Aluminium producer China Hongqiao Group Limited last month said oversupply could force smaller producers into bankruptcy.
China's largest producer of aluminium, in a filing to the Hong Kong stock exchange, reported a net loss of 2.16 billion yuan ($345.43 million) for January-March, compared with a loss of 975 million yuan a year prior.
Chalco sells the aluminium it produces mainly in the Chinese market, where spot prices
Chalco swung to a full-year profit in 2013 but said oversupply and falling prices would make for a challenging 2014. On Tuesday, the company said it expects to record a loss for the first half of 2014.
Chinese aluminium smelters are likely shut about 2 million metric tonnes of operating capacity in the coming months to limit losses amid falling prices and dwindling government support, industry executives told Reuters.
Aluminium producer China Hongqiao Group Limited last month said oversupply could force smaller producers into bankruptcy.
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