Aug 18, 2010(Bloomberg)--Aluminum Corp. of China Ltd., the nation's biggest producer,increased spot alumina prices by 4 percent as the prospect of rising inflation drove up commodity prices.
The price of semi-finished alumina, used to make aluminum, was increased to 2,750 yuan ($405) a metric ton today from 2,650 yuan a ton, the Beijing-based company, known as Chalco, said today on its website.
Copper and aluminum climbed to the highest in more than a week in Shanghai today on speculation a rising inflation rate will support commodity prices and demand may be improving in China, the world's biggest consumer of metals.
"The price rally of aluminum and other metals prompted Chalco to raise raw material prices as well," Heng Kun, a Shanghai-based analyst at Essence Securities Co., said by phone today. "There are expectations for rising inflation."
Chalco gained 2 percent to close at 10.82 yuan at 3 p.m. in Shanghai today. The stock rose 1.4 percent to HK$6.52 at 4 p.m. in Hong Kong.