Monday, January 19, 2009

Drop In Revenues At Chinalco

China's state media said on Monday that the country's largest alumina producer, the state-owned Aluminum Corp of China (Chinalco), saw a 4.3 percent fall in revenues in 2008. The fall is being blamed on lower prices.

A spokesman for the companu, Lu Youqing, said that revenues fell to 126 billion yuan ($18.43 billion) in 2008 compared to 131.7 billion yuan the previous year. The company said that in 2008 it produced 10.1 million tonnes of alumina, 3.4 million tonnes of primary aluminium and alloy, 930,000 tonnes of aluminium products, 390,000 tonnes of refined copper, 150,000 tonnes of copper products and 4,450 tonnes of titanium sponge.

The company's Chalco subsidiary cut its spot alumina prices by 23 percent at the beginning of this year, after reducing the prices by 38 percent last year on weaker demand.

China's domestic aluminium prices are expected remain below the cost of production in 2009 according to Mr Wen Xianjun, vice chairman of China Nonferrous Metals Industry Association, said on Monday.

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