Shares in Aluminum Corp of China (Chalco) surged 7.21 per cent yesterday after the company raised the spot price of alumina for the third time this year, as the latest economic data showed manufacturing activity on the mainland was expanding.
China's biggest alumina and aluminium producer raised its spot alumina price 4.3 per cent to 2,400 yuan (HK$2,723) a tonne, effective July 31, the company said on its website.
It was the third increase this year after a 4.55 per cent rise in April and 10 per cent in January.
Zhang Qing, Chalco's investor relations manager, said earnings would improve in this half given surging demand and prices for aluminium.
Chalco had warned earlier it might post a loss for the first half of this year after posting a loss of 1.89 billion yuan for the first quarter.
Ms Zhang declined to say whether the company could return to profit in the second half.
Chalco gained 65 HK cents to close at HK$9.67 yesterday. The stock has risen 137 per cent this year.
