Tung Tai Securities
Chalco (2600) (buy) raised its spot alumina price by 8.5% yesterday to reflect tightening supply. It boosted the price to 3800 yuan a tonne from 3500 yuan earlier. The increase was a quick turnaround as the company had earlier cut the spot alumina price 10% to 3500 yuan a tonne on September 13. The price rise will not have much impact on Chalco’s profit as less than one-third of alumina it produced was for external sale. However, tightening supply and price rise will help to push up aluminium price and boost Chalco’s margin
Chalco (2600) (buy) raised its spot alumina price by 8.5% yesterday to reflect tightening supply. It boosted the price to 3800 yuan a tonne from 3500 yuan earlier. The increase was a quick turnaround as the company had earlier cut the spot alumina price 10% to 3500 yuan a tonne on September 13. The price rise will not have much impact on Chalco’s profit as less than one-third of alumina it produced was for external sale. However, tightening supply and price rise will help to push up aluminium price and boost Chalco’s margin
