CapitalVue reported that Aluminum Corporation of China posted Q3 net profit of CNY 555 million with earnings per share of CNY 0.042.

During the same period last year, Chalco had reported a loss of CNY 118 million. For the first 9 months, Chalco recorded net profit of CNY 968 million up from the CNY 412 million earned during the same period in 2010.

According to the report, the demand and supply situation for aluminum improved during the third quarter, driving up aluminum prices. The average price of domestic electrolytic aluminum rose 17.6% YoY and 6% QoQ while the domestic price of aluminum at end September was up 4.73% from the beginning of 2011.

However, aluminum prices had been falling since the beginning of September with prices down CNY 2,000 per tonne from the 2011 high of CNY 18,650 per tonne recorded on July 28.

The aluminum industry requires aluminum prices to be between CNY 16,000 and CNY 16,500 per tonne to breakeven which could mean that aluminum producers may be returning to a situation of low profit margins or even incurr losses.

(Sourced from CapitalVue)