(Minews) - Reuters reported that Aluminum Corporation of China Limited booked a net loss for the Q1 that was twice as wide as the same period a year earlier, as severe oversupply of the metal pushed down prices.
China's largest producer of aluminium, in a filing to the Hong Kong stock exchange, reported a net loss of CNY 2.16 billion for January to March compared with a loss of CNY 975 million a year prior.
Chalco sells the aluminium it produces mainly in the Chinese market, where spot prices fell 11% in the three months to March 31.
Chalco swung to a full year profit in 2013 but said that oversupply and falling prices would make for a challenging 2014. It expects to record a loss for the H1 of 2014.
Chinese aluminium smelters are likely shut about 2 million tonnes of operating capacity in the coming months to limit losses amid falling prices and dwindling government support.
Aluminium producer China Hongqiao Group Limited last month said that oversupply could force smaller producers into bankruptcy.
