Aluminum Corporation of China Hits Limit-Up, Market Cap Exceeds 200 Billion

Deep News05-26

On May 26, the nonferrous metals and aluminum sector saw repeated activity, with Aluminum Corporation of China Limited hitting the daily limit-up during trading, bringing its total market capitalization to 207.4 billion yuan.

The news is driven by Guinea, the world's largest bauxite producer, which plans to announce reform measures next month to implement export controls on the ore to boost prices. Guinea accounts for over one-third of global bauxite production. Dongwu Securities pointed out that copper concentrate processing fees have fallen to historically extreme lows, putting pressure on smelting profits and limiting supply growth due to difficulties in raw material replenishment. Regarding aluminum, domestic supply and demand for primary aluminum are both increasing, with social inventories continuing to decline. LME inventories have dropped below 340,000 tons, and rising overseas premiums are strengthening the transmission mechanism. Copper and aluminum prices are expected to remain strong with short-term volatility.

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