Chalco raises spot alumina prices 10%
Updated: 2009-01-20 07:19
(HK Edition)
|
|||||||
HONG KONG: Aluminum Corp of China Ltd (Chalco) raised spot alumina prices by 10 percent yesterday to 2,200 yuan ($321.80) per ton, the first hike this year, the firm said on its website.
Zhang Qing, Chalco's investor relations manager, said the hike reflected higher term prices, which were rising due to the higher prices of the metal.
"The spot price reflects better market conditions," Zhang said. She added that demand for alumina, the main material used in aluminum production, was getting better.
Chalco, the third-biggest loser on the Hang Seng Index (HSI) last year, having shed 75 percent, jumped 5.7 percent yesterday to close at HK$3.88. Its Shanghai stock rose 2.2 percent to end at 6.85 yuan, the highest close since Dec 23.
Aluminum demand in China may this year post the slowest consumption gain since 1997, Wang Feihong, an analyst at Beijing Antaike Information Development Co, forecast on Nov 12.
Chalco's term alumina contracts for 2009 are priced on aluminum prices on the Shanghai Futures Exchange.
Other refineries in China were offering spot alumina at 1,800-1,900 yuan a ton, and little has changed so far this year, smelter officials said.
Meanwhile, Aluminum Corp of China, parent of Chalco, will cut executive pay by as much as 50 percent, after profits slumped last year on declining metal prices, according to Vice President Lu Youqing.
Workers' wages will be reduced by 15 percent to pare costs, which may decline by a total of about 2 billion yuan ($293 million) because of the initiative, Lu said yesterday in an interview from Beijing. There will be no layoffs, he said.
"A wage cut will benefit Chalco's earnings", Essence Securities Co analyst Heng Kun said. Heng has made an "add" recommendation on Chalco's stock, which was the day's second-biggest gainer on the HSI.
Agencies
(HK Edition 01/20/2009 page1)