Metals News
Chalco to Benefit as China Limits Metal Production, Liang Says
industry news
03:44PM
Jul 26,2010
Source:SMM

BEIJING, July 26 -- Aluminum Corporation of China Ltd., the nation's largest maker of the metal, rose the most in four months in Shanghai on speculation China is seeking to curb industry overcapacity, boosting the company's profit outlook.

Chalco, as the company is known, jumped 6.4 percent to 10.17 yuan at 2:08 p.m. local time.

China will limit production of 10 kinds of non-ferrous metals, including aluminum, to a combined annual output of about 41 million tons by 2015, the China Securities Journal reported today, citing Shang Fushan, vice chairman of the China Nonferrous Metals Industry Association.

"The overcapacity problem in the aluminum market is the most serious; when capacity is limited, the market will feel that there will be less competition," Owen Liang, analyst at Guotai Junan Securities Co., said by telephone from Shenzhen. "Chalco is a leading company in this industry so it will benefit from the policy."

 

 

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