Chalco shares calm on Shanxi output cut

Share price of Aluminum Corp of China (601600.SH; 2600.HK), China's biggest aluminum smelter, performed calmly after it announced that two of its Shanxi smelters were forced to shut production on power shortage. 

Chalco disclosed last Friday on its website that its 60- percent Huaze Aluminum and 51-percent Huasheng Aluminum had to slash their production by 25 percent and 22 percent of their monthly output as of July 18, respectively, due to power tension in the northeastern province of China.

The two smelters have an annual production capacity of 280,000 tons and 220,000 tons respectively. The power strain is estimated to reduce their output by 30,000 tons as a whole.

However, Chalco shares have not been affected by the news. Its A-share rose 2.12 percent Monday but dropped 1.1 percent Tuesday to end at 14.32 yuan, and its H share went the same track.

The two smelters began to reduce production since June 26.

Zhang Qing, the responsible person of the Investor Relation Department, earlier said that the power shortage would have little impact on Chalco's total output in 2008.

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