Chinalco Chairman Xiao `Optimistic' on Aluminum Price Outlook

Oct. 19 -- Xiao Yaqing, chairman of Aluminum Corp. of China, owner of the country's largest aluminum producer, comments on the outlook for prices of the metal. The state-owned parent firm, better known as Chinalco, controls Aluminum Corp. of China Ltd., or Chalco, a unit listed in Hong Kong and Shanghai. The price of London Metal Exchange aluminum for delivery in three months was little changed at $2,548 a metric ton at 4:11 p.m. Beijing time today. Xiao spoke to reporters yesterday in Beijing. On the outlook for aluminum: "I'm optimistic about aluminum prices. Domestic consumption growth is astounding. Current prices for aluminum are too low compared with other metals. "China's domestic consumption and production of aluminum rose by almost 25 percent last year. This year's rise will be by about the same rate. "China will surely become a net importer of aluminum products, possibly in five years or so." On alumina prices and bauxite supplies: "Alumina prices are pretty stable at current levels of 3,500-4,000 yuan a ton; they are reasonable. "China's bauxite imports will rise, and prices will go higher and higher, because China's deposits are being depleted and exporting countries are seeking to curb supplies."