Aluminum Corporation of China Limited, popularly known as Chalco, announced on Tuesday, April 27, that its net profit in Q1 2021 recorded a thirtyfold year-on-year surge and stood five-year high at RMB 966.7 million ($149 million), driven by aluminium price growth to decade peaks and production increase. The company’s best result was a profit of more than RMB 1 billion in Q4 2015.
China’s domestic aluminium prices grew more than 20 per cent in 2020 on subsequent recovery led by resurgent Chinese demand. They further climbed 11.3 per cent in the first quarter of this year and hit 11-year high at RMB 18,655 per tonne.
Chalco said its revenue in Q1 2021 advanced 32.6 per cent over the year to come in at RMB 52.6 billion, attributing to the increase of its realised aluminium sales price by 20.4 per cent and primary aluminium production by 2.1 per cent to 970,000 tonnes, 4.08 per cent higher than its Russian rival Rusal’s aluminium output of 932,000 tonnes during the same period.
Chalco mentioned that its alumina output also stood 14.6 per cent higher year-on-year to 4.09 million tonnes in 1Q2021, while coal output shed 33.8 per cent to 1.53 million tonnes.
The Beijing-based company, which has started using cleaner solar and wind power as alternatives to coal, said last month that it reduced its carbon dioxide emissions by 5.2% in 2020.
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