The largest aluminum producer in the PRC successfully reduces loss
One of the largest aluminum producers, the company of the People's Republic of China under the name Aluminum Corp. of China Ltd. (Chalco), reported that for the first half was able to cut its loss by as much as eighty percent, which is about five hundred twelve million dollars, and the main revenue rose by seven per cent, that is twelve and a half billion dollars.
As commented on by representatives of the company, this revenue growth primarily was driven by a significant increase in sales volume, as well as an active investment in the coal and energy market segments, which are rapidly developing a subsidiary of Ningxia Energy.
According to the company, the first half of this year was marked by a significant slowdown in growth in demand for aluminum in particular, due to oversupply. And this is especially noticeable problem was precisely in China, as the world's capacity for primary aluminum production were running at eighty-five and a half percent, while China showed congestion at eighty-nine and a half percent.
It is important to note that the three-month futures price dropped significantly: on the London Metal Exchange and the Shanghai she fell to seven and a half percent to the price of $ 1,955 thousand per ton.
During the first half of the significant cooling of the global alumina market was recorded, which was rather strange after the beginning of the rapid growth in the beginning of the year. Alumina prices have also fallen low enough compared to the previous years. For example, in China the price of alumina fell by three and a half percent, and in Australia — five per cent, which amounted to three hundred thirty-three dollars per ton.
From Chalco report shows that the company plans in the future a more detailed study of the international market to as much as possible better to maximize sales effectiveness. The company decided to diversify as thoroughly as possible all the available sources of income, and especially focus on the optimization of logistics and marketing of coking coal to actively increase its production.
As representatives of the company, the company's future activities will be based on the principle of «cash is king», which will make it possible to maintain fairly stable cash flow from current activities, and also help to more accurately control the costs.