Baoshan, Chalco Lead China Mining Stocks Down on Demand Concern

Baoshan Iron & Steel Co., China's biggest steelmaker, and Aluminum Corp. of China Ltd. led declines in commodity stocks on concern the deepening global credit crisis will slash demand for metals.

Baoshan and other Chinese mills are cutting production as demand for building steel weakens. Aluminum Corp., known as Chalco, yesterday said third-quarter profit will slump by more than half because of higher raw material costs.

Commodities prices are heading for the biggest annual decline since 2001 as investors exit leveraged bets and slowing economic growth erodes demand for raw materials. Copper dropped the most in four years in London and aluminum slumped to an almost three-year low as the credit crisis deepened.

Baoshan dropped 3.3 percent to close at 6.41 yuan in Shanghai, following an 8.8 percent decline yesterday. Wuhan Iron & Steel Co., China's third-biggest steelmaker, fell 3.2 percent to 6.56 yuan, the lowest since Sept. 18.

Chalco, China's largest producer of aluminum, yesterday said it cut alumina prices for immediate delivery for a third time in five months due to falling demand. Alumina Ltd., partner in the world's biggest producer of the material used to make aluminum, fell to a nine-year low of A$2.97 in Sydney trading.

Furukawa-Sky Aluminum Corp., Japan's second-biggest aluminum products maker by market value, slid 2.7 percent to a record low of 180 yen in Tokyo.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.