Chalco sees further headwinds for aluminium market

Primary aluminium production at Aluminium Corporation of China (Chalco) dropped 19.7 percent to 1.63 million tonnes in the first six months of 2014 from the previous year, it said.

In last Friday’s half year results announcement, Chalco posted a net loss of 1.97 billion yuan for the second quarter, accumulating a total net loss of 4.13 billion yuan for the first half of this year. The number was a staggering increase of 3.53 billion yuan from a year earlier.

Chalco attributed the loss to "a significant number of gains from capital operation" in the first half of 2013, and "a decrease of selling price by about 6 percent to 11 percent" in the first half of this year.

“In the first half of 2014, the global economy recovered feebly and China’s economy suffered from downward pressure. Bulk commodities market entered new periodic low ebb since the international financial crisis in 2008, bringing great pressure to production and operation of the Company,” the aluminium producer said in its business review.

The company also said that it is not optimistic about the market situation for the rest of the year and will continue to face “severe operational situation”. They will seek to maintain the main working philosophy through actions such as conducting ongoing operational transformation, increasing effort to control losses and optimizing the structure of their assets.

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