NANSHAN AL INTL (02610) surged 12.13% during intraday trading on Wednesday, defying the broader market trend. The stock's significant rise reflects growing investor confidence in the company's strategic positioning in the global aluminum market.
Globally, the primary aluminum market is in a state of tight balance, with Indonesia being a critical source of marginal supply increases. However, Indonesia's power supply infrastructure challenges could lead to slower-than-expected capacity ramp-up, potentially tightening supply further. This uncertainty is driving positive sentiment toward aluminum producers like NANSHAN AL INTL.
The company's planned 1 million-ton-per-year aluminum smelting project in Indonesia's Bintan Industrial Park is a key driver of its stock performance. The project, backed by an existing alumina refinery with a 4 million-ton annual capacity, offers significant synergistic cost advantages. Investors are optimistic about the company's ability to leverage these advantages to capitalize on favorable aluminum prices, which could exceed $3,000 per ton.
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