01 SEPTEMBER 2015Financial Times
China Hongqiao defies aluminium slump, posts a healthy profit
Edited by : AL CIRCLE
1 min read
The price of aluminium may be trading at its lowest in six years, but China Hongqiao, which has grown to become one of the world's largest producers of the metal, reported a healthy jump in first-half profits on Friday last week.
China Hongqiao said that net profit rose 33 per cent to 2.72b RMB ($426m) for the six months ending in June, according to a statement to the Hong Kong stock exchange, reports Henry Sanderson, commodities correspondent.
China's aluminium market "continued to recover and saw a balance in strong demand and supply" the company's chairman Zhang Shiping said. "China's economy managed gradual yet stable and positive development and the demand for aluminium products by relevant domestic industries became increasingly robust in the first half of the year," he added.
The company's capacity rose by 44.6 per cent compared to the same period a year earlier, making it China's largest producer. That comes as the global aluminium market is suffering with oversupply, as prices this month fell to their lowest level in six years, at just above $1,500 a tonne.
Russian producer Rusal said it expects a surplus in the global aluminium market this year of 277,000 tonnes this year.
China Hongqiao said that net profit rose 33 per cent to 2.72b RMB ($426m) for the six months ending in June, according to a statement to the Hong Kong stock exchange, reports Henry Sanderson, commodities correspondent.
China's aluminium market "continued to recover and saw a balance in strong demand and supply" the company's chairman Zhang Shiping said. "China's economy managed gradual yet stable and positive development and the demand for aluminium products by relevant domestic industries became increasingly robust in the first half of the year," he added.
The company's capacity rose by 44.6 per cent compared to the same period a year earlier, making it China's largest producer. That comes as the global aluminium market is suffering with oversupply, as prices this month fell to their lowest level in six years, at just above $1,500 a tonne.
Russian producer Rusal said it expects a surplus in the global aluminium market this year of 277,000 tonnes this year.
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