28 AUGUST 2015<a href= "http://af.reuters.com/article/metalsNews/idAFL4N1123TY20150827" target='_blank'> Reuters </a>
Chalco swings to profit in H1 on cost cuts
Edited by : AL CIRCLE
1 min read
Aluminum Corp of China Ltd (Chalco) posted a first-half net profit of 27.6 million yuan ($4.31 million), helped by lower production costs and rising sale prices of alumina products.
Chalco swung to a net profit in the first quarter of this year after having posted a record loss in 2014 that was partly due to huge writedowns. The first-half profit compared with a net loss of 4.12 billion yuan in the six months through June 2014.
The company, China's top integrated aluminium group, sells its product mainly in the domestic market.
The front-month aluminium contract in Shanghai fell about 4 percent in the first half of this year as overcapacity weighed on prices amid the slow economic growth in China. The contract price, typically reflects domestic demand for spot primary aluminium, has fallen further since then and stood at 11,860 yuan on Thursday.
Low prices have prompted high-cost smelters in China to idle total more than 1.8 million tonnes of capacity so far this year. Smelters may close more capacity in the coming few months as metal prices trough at 6 1/2 year-lows.
($1 = 6.4038 Chinese yuan renminbi)
Chalco swung to a net profit in the first quarter of this year after having posted a record loss in 2014 that was partly due to huge writedowns. The first-half profit compared with a net loss of 4.12 billion yuan in the six months through June 2014.
The company, China's top integrated aluminium group, sells its product mainly in the domestic market.
The front-month aluminium contract in Shanghai fell about 4 percent in the first half of this year as overcapacity weighed on prices amid the slow economic growth in China. The contract price, typically reflects domestic demand for spot primary aluminium, has fallen further since then and stood at 11,860 yuan on Thursday.
Low prices have prompted high-cost smelters in China to idle total more than 1.8 million tonnes of capacity so far this year. Smelters may close more capacity in the coming few months as metal prices trough at 6 1/2 year-lows.
($1 = 6.4038 Chinese yuan renminbi)
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