Growing aluminium prices succoured Chalco to book the finest profit in 8 years
On 26th October 2021, the Chinese company listed in Hong Kong and in New York bourse, Aluminum Corp of China Ltd stated that its quarterly net profits in July-September leapt more than five-fold Y-o-Y, swiping to highest since late 2013 on the shoulders of booming aluminium and alumina prices.
The Chinese state-controlled company, Chalco, said: “Q3 net income was RMB 2.23 billion ($349 million), up around 430% from an adjusted RMB 421.25 million a year earlier.”
The Refinitiv Eikon data reveals: “Profits were also up almost 6% from a bumper second quarter and marked Chalco's best result since the net income of RMB 2.79 billion in the fourth quarter of 2013.”
The Q3 revenues concurrently shot up by 51.3% Y-o-Y to RMB 74.19 billion as Shanghai aluminium prices escalated to their highest since 2008. The rebound cropped as the electricity crisis impacted the industry and govt. imposed restrictions on Chinese smelters and took about 3 million tonnes of annual supply out of the market.
Chalco's did not experience too many production disturbances, as its operational data showcased. The company confirmed that it produced 2.92 million tonnes of primary aluminium in January-September, up by 5.8% Y-o-Y. However, this implies Q3 production of 960,000 tonnes, a growth of around 6.7% on the year.
The world’s alumina producer, Chalco with 14.53 million tonnes in 2020, produced 12.17 million tonnes of alumina in the first nine months of 202, a rise by 13.3% Y-o-Y and signified 3.92 million tonnes for Q3, surge by around 10.7% on the year.
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