Chalco 3Q earnings plummet 92%

Aluminum Corp of China (Chalco) saw its third quarter earnings fall 92% year-on-year to US$26.7 million due to higher prices for raw materials, energy and fuel, the South China Morning Post reported. Net profit for the first nine months of the year fell by 72.1% to US$377.2 million. Aluminum prices have fallen by 33% from their peak due to expectations that a global economic slowdown will stifle demand from manufacturers of aircraft, consumer goods and automobiles. A recent JP Morgan report said that with current prices at about US$2,031 (RMB13,900) per ton, even the lowest-cost smelters are facing losses of up to US$146 (RMB1,000) per ton. Spot prices for alumina on the mainland have dropped by nearly 40% to US$387 (RMB2,650) per ton due to higher supply from increased capacity.