02 FEBRUARY 2015Shanghai Metal Market
Top China aluminium maker Chalco expects loss in 2014 on sluggish market, provisions
Edited by : AL CIRCLE
1 min read
Aluminum Corp of China Ltd (Chalco), the country's biggest producer of primary aluminium, expects to swing to a loss in 2014 due to sluggish market prices and provisions, it said on Friday.
Chalco, which is also China's biggest producer of alumina, the raw material needed to produce aluminium, expects to post a net loss of 16.3 billion yuan ($2.61 billion) for 2014, compared with a profit of 948 million yuan a year earlier, it said in a filing on the Hong Kong stock exchange.
The last time it posted a loss was in 2012.
Chalco, which sells its products mainly in China, the world's largest aluminium market, attributed the loss mainly to substantial provisions made for some long-term assets and lower aluminium prices.
The company's board approved substantial provisions for impairment of assets amounting to about 5.5 billion yuan for 2014, it said in a separate statement.
Chinese aluminium smelters are likely to close more than 500,000 tonnes of capacity in coming months as domestic prices fall below the cost of production amid slowing demand and plentiful supply, industry sources said in January.
($1 = 6.2495 Chinese yuan renminbi)
Chalco, which is also China's biggest producer of alumina, the raw material needed to produce aluminium, expects to post a net loss of 16.3 billion yuan ($2.61 billion) for 2014, compared with a profit of 948 million yuan a year earlier, it said in a filing on the Hong Kong stock exchange.
The last time it posted a loss was in 2012.
Chalco, which sells its products mainly in China, the world's largest aluminium market, attributed the loss mainly to substantial provisions made for some long-term assets and lower aluminium prices.
The company's board approved substantial provisions for impairment of assets amounting to about 5.5 billion yuan for 2014, it said in a separate statement.
Chinese aluminium smelters are likely to close more than 500,000 tonnes of capacity in coming months as domestic prices fall below the cost of production amid slowing demand and plentiful supply, industry sources said in January.
($1 = 6.2495 Chinese yuan renminbi)
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