China Nonferrous Metals News
28th April 2020: Chalco published its Q1 2020 report, revealing operating revenue of RMB39.7 bln, profits of RMB218 mln and net profits attributable to the parent company of RMB30.72 mln, all showing a decline y-o-y. However, the net operating profit attributable to the parent company reached RMB112 mln, an increase of RMB55 mln y-o-y, and the operating net cash flow increased by RMB2.62 bln y-o-y. The company’s interest-bearing net debt decreased by RMB 800 mln y-o-y, marking a positive beginning in a depressed market. In Q1 2020, domestic alumina production costs dropped by 6.8% y-o-y and that of primary aluminum smelting fell by 4.5% y-o-y.
Domestic aluminium prices slumped to RMB11,500/t from RMB14,300/t and alumina prices dropped to RMB2,350/t from RMB2,610/t during Q1 2020. Domestic aluminium producers faced shrinking demand, increasing liquidity pressures and sharper losses during Q1 2020.