Chalco raises spot alumina prices on rising demand

Aug. 4, 2009 (China Knowledge) - Aluminum Corp of China Ltd<601600><2600>, the third-largest alumina producer in the world, raised its spot alumina prices by 4.3% as downstream demand for electrolytic aluminum recovered. The spot price of alumina was increased to RMB 2,400 per ton effective last Saturday, according to Chalco's statement yesterday. Chalco's new spot alumina price is higher than the current market spot prices, which are between RMB 2,200 and RMB 2,300 per ton. Electrolytic aluminum smelters, who have increased their output for three consecutive months, have been using more alumina, thus driving up demand and prompting the increase in spot prices, said one analyst. Chalco earlier raised spot alumina prices by 4.3% to RMB 2,300 per ton on Mar. 30. Last Monday, Chalco forecast a loss for the first half of 2009, blaming low aluminum prices and low capacity utilization amid the global financial crisis.