Chalco Said to Loss CNY2.05bn in October-November 08

China's leading aluminum producer Aluminum Corporation of China Ltd. (NYSE: ACH; Chalco) is said to suffer pre-tax losses of CNY 2.05 billion from October to November 2008, according to sources. 
The company had pre-tax losses of CNY 900 million in October and CNY 1.15 billion in November 2008, due to slumping aluminum prices, production reduction and sluggish demand amid global financial crisis, said the source, adding that the firm might be in the red in 2008, if the losses continued to enlarge.

Chalco previously posted pre-tax profits of CNY 295 million for July-September and CNY 3.55 billion for January-September, plunging 91% and 73% year on year, respectively.

The company lowered its product prices for several times in the second half of 2008 and had suspended operating 4.11 million tons of alumina production capacity, or 38% of its total, by November 15.

Chalco is estimated to spend CNY 11,000-11,500 producing a ton of electrolytic aluminum, while market price of the product is CNY 10,500 per ton, said Guotai Jun'an Securities analyst Lin Haoxiang, forecasting that Chalco would be unprofitable in October-December.

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