Singapore 29/01/2016 - Aluminium Corp of China (Chalco) expects to post net profit of around 200 million yuan ($30 million) in 2015, reversing a net loss of 16.22 billion yuan in the previous year, the company announced in a Thursday filing to the Hong Kong stock exchange.
The company had further reduced production costs and closed certain loss-making productions, resulting in a decrease in the production costs of alumina and electrolytic aluminium by around 13 percent and nine percent respectively.
Chalco added the turnaround in earnings was also due to the company implementing various measures including revitalising idle assets and introducing strategic investors, while gaining profits by various ways including disposal of assets and equity interests.
Substantial production cuts among Chinese aluminium producers last year saw domestic aluminium prices rise in November last year before stabilising since January this year.
The most active Shanghai Futures Exchange aluminium contract was last at 10,730 yuan per tonne on Friday, having traded around 10,500-11,000 yuan per tonne since the beginning of this year.
The China Nonferrous Metals Industry Association (CNIA) estimated total production cuts among domestic aluminium smelters at 4.91 million tonnes in 2015.