Chalco, Yunnan Aluminum Foresee Q3 Decline

Chinese nonferrous metal producers Aluminum Corporation of China Ltd, and SEHK: 2600; Chalco) and Yunnan Aluminum Co., Ltd. both predicted a third-quarter decline on October 7 amid sharp price decrease.

Chalco forecast that its net profits would plunge more than 50 percent year on year in the period from July to September 2008. Its net profits stood at CNY 2.043 billion and basic earnings per share CNY 0.16 in the third quarter of 2007.

Yunnan Aluminum, which produces and sells aluminum products, carbon and carbon products, foresaw that its net profits would slump about 50-55 percent in the first nine months of 2008 from CNY 445.419 million a year earlier.

From July 1, 2008, Yunnan Aluminum had to pay CNY 0.41 for 1-kilowatt-hour electricity, up from previously CNY 0.37. Earlier, it said that along with the electricity markup, the overall production cost of the company and its subsidiaries would hike by about CNY 100 million in 2008.

In order to survive the steep price decline, quite a few producers of nonferrous metals turned to output reduction before October 1, 2008. Sichuan Aostaral Aluminum Co., Ltd. has ceased operation of 250,000-ton production capacity.

Henan Yuguang Gold & Lead Co., Ltd. (SHSE: 600531) has shut down 33 percent of its lead smelting capacity. Sino- Platinum Metals Co., Ltd. (SHSE: 600459) has suspended production in Yuanjiang Nickel Co. Ltd..

In fact, many nonferrous metal producers has successively issued bonds since this April, such as Chalco, Shandong Nanshan Aluminum Co., Ltd. (SHSE: 600219), Hunan Nonferrous Metals Corp., Ltd. (SEHK: 2626), Yunnan Copper Co., Ltd. (SZSE: 000878), and Jiangxi Copper Co., Ltd. (SHSE: 600362: SEHK: 0358).

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.