Reuters reported that Aluminum Corporation of China Limited missed forecasts for Q3 earnings and analysts said its outlook is bleak as a slowing global economy hurts prices for the lightweight metal.

Three month aluminum contracts on the London Metal Exchange fell to their lowest in more than a year last week while aluminum prices in Shanghai were down about 1.5% this month on a global slump in metals prices.

Chalco posted a net profit of CNY 554.99 million for the July to September quarter against a net loss of CNY 117.81 million per year earlier. The result missed an average forecast of CNY 610 million from six analysts polled by Reuters.

Chalco said that sales rose 45% to CNY 41.64 billion. Alcoa Inc the largest US aluminum producer said earlier this month that an economic slowdown had hurt demand and knocked prices for the metal lower denting its Q3 profit.

Demand for aluminum which is closely tied to economic activity has been solid this year in China, the world's largest consumer of the metal used in industries from packaging to construction and aviation. But China's domestic aluminum makers have been plagued by high production costs, such as energy and raw materials and overcapacity.

Standard Chartered said that aluminum capacity in China was about 23.5 million tonnes and production this year was likely to be about 19 million tonnes. Going into the fourth quarter, we think there will continue to be a supply response given the attractive aluminum prices now which will continue to act as a cap on aluminum prices.

Chalco's Hong Kong listed shares ended up 1.8% before the results were announced. They are down 45 percent so far this year underperforming the Hang Seng Index which was down 17.7% in the same period.

Analysts said that the company planned to issue additional equity via an Ashare placement in Shanghai to raise capital for growth in bauxite, alumina and coal and to boost working capital.

(Sourced from Reuters)