MARKET TALK: Chalco Down 0.3%; Most Smelters Loss-Making -CS

10th Jun 2010 03:40

0240 GMT [Dow Jones] Chalco (2600.HK) down 0.3% at HK$6.02 vs HSI down 0.2%, ignoring Australian Financial Review report Thursday that it's back in talks with Rio Tinto (RIO.AU) to jointly expand Queensland bauxite project in Queensland state, as report essentially confirms what Chinalco official told Dow Jones yesterday, that Chalco still pursuing project. Chalco shares corrected steeply vs April peak of HK$9.09, as sector fundamentals worsening. Credit Suisse says SHFE aluminium price at US$0.79/lb, vs LME at US$0.83/lb, both depressed at US$0.10/lb below cash cost based on house's estimates; believes most Chinese smelters losing money at current prices. Chalco's intraday low of HK$5.98 not far from 52-week low of HK$5.90 hit Monday, which may act as immediate support. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 09, 2010 22:40 ET (02:40 GMT)