Chalco increased spot alumina prices on rising demand

Published: 04 Aug 2009 23:59:29 PST

August 5 MetalBiz--Aluminum Corp of China Ltd, the third-largest alumina producer all over the world, raised its spot alumina prices by 4.3% as downstream demand for electrolytic aluminum rebounded.

The spot price of alumina was increased to RMB 2,400 per ton effective on August 1, according to Chalco's statement on August 4.

Chalco's new spot alumina price is higher than the current market spot prices, which are between RMB 2,200 and RMB 2,300 per ton.

Electrolytic aluminum smelters, who have increased their output for 3 straight months, have been using more alumina, hence boosting demand and prompting the increase in spot prices, said an analyst.

Chalco earlier lifted spot alumina prices by 4.3% to RMB 2,300 per ton on Mar. 30.

On July 27, Chalco forecast a loss for the first half year, blaming low aluminum prices and low capacity utilization amid the global financial crisis.