Chalco slashes spot alumina prices by 23% in home market

Jan. 5, 2009 (China Knowledge) - Aluminum Corp of China Ltd (Chalco)<601600><2600><ACH>, the third-largest alumina producer in the world, has slashed its spot alumina prices by 23%, sources reported.

According to the statement released on its website, Chalco is selling spot alumina at RMB 2,000 (US$293) per ton, compared with RMB 2,600 at the end of 2008.

The move will affect prices in the spot market, a Chalco official said, adding that the company doesn't have much spot material to sell as it has reduced alumina output.

The official added the Chinese aluminum smelters had cut production, reducing demand for alumina, the main raw material for production of the metal.

Industry insiders indicate the price was still higher than RMB 1,800 to RMB 1,900 per ton offered by other producers.

Chalco cut the price to RMB 2,600 in November, down 38% from RMB 4,200 at the beginning of last year.

U.S.-based financial holding company JPMorgan Chase & Co raised its shareholding in Chalco to 6.12% from 5.89% on Dec. 18, according to China Knowledge's earlier report.