Chalco to Post First-Half Loss on Low Aluminum Prices

BEIJING, July 27 -- Aluminum Corp. of China Ltd., the nation's biggest producer of the metal, expects to post a net loss for the first half of the year as falling demand drove down production and prices.

    Chalco, as the company is known, said both output and prices were low during the six months period given "significantly" weaker demand for aluminum in China and overseas, according to a filing to the Hong Kong stock exchange today. The company didn't provide details on the size of the loss.

    The company posted losses in both the first quarter this year and the fourth quarter of 2008. Chairman Xiong Weiping said on July 23 a price recovery for the lightweight metal will lag behind other base metals because of high global inventories, while a demand revival from the auto and building industries had yet to make a an "obvious" impact.

    The Beijing-based company had a profit of 2.4 billion yuan for the six months ended June 30, 2008, or 0.178 yuan a share, the statement said.

    (Source: Bloomberg)