Chalco raises alumina spot price to CNY 3000 per tonne

Reuters reported that Aluminium Corporation of China Limited raised its alumina spot price by 7.1% to CNY 3,000 per tonne from January 8 2010. As per report, the price change follows a 5.7% price increase that took effect on December 31st 2009. The company executives said that Chalco raised alumina prices steadily throughout 2009 from a low of CNY 2,000. Prices had halved in the second half of 2008 from CNY 4,200 per tonne. The company had shut 4.11 million tonnes of its 11 million tonne alumina capacity because of the economic downturn, which crippled demand for the metal, but it had since restarted all its plants. Chinese aluminium smelters have already agreed to pay higher term prices for imported alumina in 2010. They will pay 14.5% to 15% of prices for aluminium on the London Metal Exchange MAL3 up from 13.5% to 14% last year. Smelter officials said that Chalco's prices for term alumina are set at 17% of Shanghai Futures Exchange aluminium prices in 2010 compared with 15% to 18% in the last 3 years. (Sourced from Reuters)