Reuters reported that Aluminum Corp of China Limited posted its fourth straight quarterly net loss in the Q3 hurt by low aluminium prices and rising costs.

Slower economic growth in China, the world's largest producer and consumer of the lightweight metal and weakness in its property market has weighed on demand. Globally the industry has been hit by a huge inventory overhang.

Aluminium prices have dropped by one third since May 2011 peaks around USD 2,800 per tonne and the global stock overhang is seen weighing on prices for the next few years.

Chalco's CNY 1.08 billion net loss was less than the average forecast of CNY 1.9 billion loss from five analysts polled by Reuters and compares with a profit of CNY 555 million in the same quarter a year earlier.

Chalco has sought to diversify into coal, iron ore and electricity but last month dropped USD 926 million bid for a majority stake in Canada's Mongolia focused coal miner SouthGobi Resources Ltd due to political opposition from Mongolia.

It also ended an agreement to buy a 29.9% stake in Winsway Coking Coal saying it was unable to win approvals from Chinese and overseas authorities in a timely manner.

For the first 9 months of the year, Chalco posted a net loss of CNY 4.33 billion reversing a 968 million net profit in the same period last year.

Source - Reuters

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