UPDATE 1-China July car sales jump, strong growth seen ahead

Aug. 6 (Bloomberg) -- Alumina Ltd., partner in the world’s biggest producer of the material used to make aluminum, rose to the highest in almost nine months in Sydney trading after reporting a smaller-than-expected first-half underlying loss. Alumina advanced 9.8 percent to A$1.795 at the 4:10 p.m. Sydney time close on the Australian stock exchange, the highest since Nov. 10. The Melbourne-based company today reported an underlying loss of A$15 million ($12.6 million) in the six months ended June 30, beating the A$22 million median loss estimate of three analysts compiled by Bloomberg. “It appears that the worst is over,” said Ben Potter, an analyst at IG Markets in Melbourne. “The headline numbers were certainly stronger than expected and obviously we’ve got a 4 percent rise in the aluminum price overnight helping the stock as well.” Alcoa Inc., Alumina’s partner and the largest U.S. aluminum producer, last month said China’s 4 trillion yuan ($586 billion) stimulus package has spurred infrastructure projects and boosted consumer spending, raising aluminum demand. There were early positive signs of economic recovery in some key markets, Alumina Chief Executive Officer John Bevan said on a conference call with reporters. “In terms of the outlook for Alumina Ltd in the second half, we will receive the benefit of the recent improvement in aluminum prices,” Bevan told reporters today. Net income was A$6 million in the six months ended June 30, down 86 percent from A$43.8 million a year ago, Alumina said in the statement. Alumina owns 40 percent of the Alcoa World Alumina & Chemical venture and Alcoa owns the balance. The venture produces one quarter of the world’s alumina, which is refined into aluminum. The price of aluminum for three month delivery on the London Metal Exchange jumped 4 percent to $2,070 a metric ton yesterday. It fell 1.2 percent to $2,046 a ton at 10:58 Sydney time.