Chalco cuts alumina price 23%

Print this page Posted on : 01-06-2009 by recycleinme.com

Aluminum Corp of China Ltd, the country's biggest alumina producer by output, cut spot prices of alumina by 23 per cent on January 1, making it the fifth reduction since June amid the ongoing global financial crisis that is hurting demand from sectors such as real estate. The company, also know as Chalco, said on its Web site that it will sell alumina in the spot market for CNY2,000 a tonne, down from CNY2,600/tonne. China's spot alumina prices have declined about 50 per cent in the last six months and is now around CNY1,700-CNY1,800/tonne, forcing most smelters to incur losses as demand for consumer goods, cars and houses {ndash} industries that are among the biggest consumers of the metal {ndash} dwindle. Still, alumina prices are unlikely to fall further as they are already at par with their cost of production, said Mr Heng Kun, a metals analyst with Essence Securities Co.

Source : Business Line