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Chalco Surges the Most in Seven Months After Raising Prices
Jan 6,2010 09:05CST
industry news
Source:SMM

BEIJING, Jan. 6 -- Aluminum Corp. of China Ltd., the nation's biggest producer of the metal, gained the most in seven months in Hong Kong trading after increasing prices.

The Beijing-based producer, known as Chalco, jumped as much as 9.3 percent, the most since June 1, 2009, and was up 9 percent to HK$9.49 at 12:30 p.m. local time. In Shanghai trading, the stock gained 2.8 percent to 14.87 yuan at 1:45 p.m.

Aluminum futures in Shanghai climbed to their highest level since Sept. 2008 today, joining a metal rally as global manufacturing data pointed to signs of a revival in demand. Chalco raised alumina prices 5.7 percent, the third increase in five months, and the price of aluminum by 7.8 percent from a month ago, according to a table on its Web site yesterday.

"Higher prices indicate Chalco is running at almost 100 percent of capacity," Helen Lau, a Hong Kong-based analyst at OSK Securities Hong Kong Ltd., said by phone today. "The alumina price is highly geared to aluminum price, both of which contribute to Chalco's earnings."

Aluminum futures for April delivery in Shanghai climbed as much as 2 percent to 17,555 yuan a ton, and traded at 17,490 yuan a ton at 2:07 p.m. local time.

The U.S. Institute for Supply Management's factory index rose last month to the highest level since April 2006, Europe's manufacturing industry expanded at the fastest pace in 21 months in December, and Chinese factory activity grew by the most in five years in December, reports showed yesterday.

 

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