CapitalVue reported that Aluminum Coil Corporation of China raised the ex factory price of alumina to CNY 2,900 per tonne an increase of 3.6% from several days ago.
According to the company, policy changes on Indonesian alumyte impacted on supplies of the metal and Chalco has now decided to carry out flexible production at its factories in Shandong, Henan and Zhongzhou and reduce capacity by 1.7 million tonnes.
The company’s 2011 Annual Report indicated that Chalco produced a total of 11.01 million tonnes of alumina and the current cut in capacity represents a 15% reduction in total capacity. Since May, Indonesia raised customs duties on exports of metals including alumyte resulting in higher procurement costs for Chinese enterprises.
Chalco incurred losses for 2 years in a row and Q1 losses rose from CNY 500 million in the Q1 of 2011 to CNY 1.1 billion.