Chalco, or Aluminium Corporation of China, declared that its net profit grew fourfold in July-Sept (Q3) from the prior-year period as Shanghai aluminium prices hit its highest mark in 2.5 years in the week prior and resulting in reduction in production cost. Both these factors offset the drop in production in Q3
Aluminium prices rose 7pc from the prior-year period at CNY 15,000 ($2,240/mt) last week.
Chalco’s aluminium production dropped to 900,000mt, down by 5.3pc in Q3, 2020. In last nine months, Chalco reported production of 2.76mn mt, down by 2.8pc from Jan-Sep 2019.
Chalco headquartered in Beijing appointed Zhu Runzhou as its new president last week as per the filings with Hong Kong Stock Exchange. The company shared that its net income rose to CNY416.06mn in Q3, up from CNY103.87mn in the same period prior-year.
Chalco’s revenues dropped by 3.5pc to CNY49.05bn, while cost of production was down by 5.2pc.
In the Jan-Sep period, Chalco’s profit dropped by 44.3pc to CNY451mn as a result of low aluminium prices in Q1, 2020, the pandemic and higher impairment provisions for bad debt. Chalco’s alumina output rose by 5pc to 10.74mn mt in Jan-Sep period.
In the July-Sep period, alumina output rose to 3.54mn mt, 3.81pc from 3.41mn mt in the prior-year period. Chalco shut down 1.8mn mt of annual alumina capacity in July but started trial production at 2mn mt in Guangxi in September.
($1 = CNY6.7029)