UC RUSAL returned to profit in the Q2 boosted by an aluminium price rebound it expects will drive more growth in defiance of renewed global economic concerns.

Mr Maxim Sokov head of corporate strategy said that "We believe the global industrial production growth supports aluminium fundamentals consumption has historically outpaced GDP growth.”

His comments came as European stocks prepared to record their sixth monthly loss this year and as investors fretted about lingering worries over the health of the US economy in particular. The results were also in sharp contrast to those last week from China's largest aluminium maker, Aluminum Corporation of China.

CHALCO suffered a loss of CNY 96.7 million in the quarter due to higher costs and overproduction. CHALCO said that the rebound in demand was sluggish and that the industry faced a glut.

Analysts estimated that China has been the driver of global industry growth as US demand slows accounting for 42% of consumption globally in 2010.

RUSAL headed by Russian oligarch Mr Oleg Deripaska enjoys a competitive cost advantage over CHALCO and other rivals due to cheap hydro power in Russia and favorable taxation. RUSAL posted a net profit of USD 1.02 billion for the three months to end June, thumping an average forecast of USD 478 million from 8 analysts polled by Reuters.

(Sourced from Reuters)