29 JANUARY 2016www.bloomberg.com
Chalco sees profit from shuttering loss-making aluminium capacity
Edited by : AL CIRCLE
1 min read
Aluminum Corp. of China Ltd. said it expects to swing to a small full-year profit after shutting loss-making capacity. Its shares rose.
China’s largest publicly traded aluminium smelter is contending with a global glut of the alloy and faltering demand at home, which have pushed prices to a six-year low in recent months. The company, known as Chalco, joined other producers in December in pledging to halt new mills and idle capacity.
Chalco expects net income of about 200 million yuan ($30 million) in 2015, after a net loss of 16.2 billion yuan the year before, according to a statement Thursday. It said its primary aluminium production costs fell about 9 percent, while the cost of alumina, a material used in the making of the refined metal, dropped about 13 percent. It also cited gains from asset disposals as contributing to the profit, without giving details.
Its shares rose as much as 3.3 percent in Shanghai to 3.72 yuan before paring gains to 3.69 yuan at 10:09 a.m. Its stock in Hong Kong rose as much as 3.1 percent.
China’s largest publicly traded aluminium smelter is contending with a global glut of the alloy and faltering demand at home, which have pushed prices to a six-year low in recent months. The company, known as Chalco, joined other producers in December in pledging to halt new mills and idle capacity.
Chalco expects net income of about 200 million yuan ($30 million) in 2015, after a net loss of 16.2 billion yuan the year before, according to a statement Thursday. It said its primary aluminium production costs fell about 9 percent, while the cost of alumina, a material used in the making of the refined metal, dropped about 13 percent. It also cited gains from asset disposals as contributing to the profit, without giving details.
Its shares rose as much as 3.3 percent in Shanghai to 3.72 yuan before paring gains to 3.69 yuan at 10:09 a.m. Its stock in Hong Kong rose as much as 3.1 percent.
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