BEIJING, March 22 (InfoChina) -- Aluminum Corp of China (Chalco, ACH.NYSE, 2600.HK) on March 21 raised its spot price of alumina from 3,600 yuan to 3,900 yuan per ton, in view of the robust market demand by electrolytic aluminum enterprises.
The normal operation of electrolytic aluminum enterprises after the Spring Festival drove the Alumina price up to 3,950-4,000 yuan per ton and the CIF price in major ports of Tianjin, Rizhao and Lianyungang climbed to 4,350 yuan.
Now, the alumina price of Chalco is very near to the 3,900-4,000 yuan price of non-Chalco alumina producers, said a sales person with one of the non-Chalco producers.
China Business News reported that those enterprises are planning to follow Chalco to raise their price, by an estimation of 200 to 300 yuan per ton.
An industry analyst with Shenyin & Wanguo Securities holds that the upward momentum of alumina price will not last for long, as alumina overcapacity still exists this year due to capacity expansion over the past few years.
Some analysts also hold that the average price in 2007 will fall to 2006’s level at some 3,000 yuan per ton.
In 2006, alumina price witnessed consecutive declines due to overcapacity.
Some industry insiders note that alumina price depends on alumina production control and downstream performance of aluminum electrolytic enterprises.
Earlier, Chalco had adjusted up its alumina price by 50 percent from 2,400 yuan to 3,600 yuan per ton effective from February 1, following other alumina producers in China. (Edited by Chen Dongyi, )
China Stock News 
