The Zhitong Finance App learned that China Aluminum (02,600) fell more than 5% in the afternoon. As of press release, it had a decrease of 4.61% to HK$3.52, with a turnover of HK$28.67,900.

According to the report published by HSBC Research, it is expected that aluminum prices will be generally stable and market supply will remain moderately exceeded this year, but with a lower comparison base, profit margins will expand, and possible production cuts or policy measures may become a potential driving force. The bank slightly lowered the target price of Chinalco and maintained a “buy” rating.

The bank expects mainland aluminum demand to grow moderately by about 3% and global production by about 2% this year. However, under more stringent environmental requirements, there is not much room to increase effective production capacity. It is estimated that the average price of LME aluminum this year is 2,300 US dollars per ton. Similar to last year, the cost per unit will fall, mainly due to lower coal prices and lower thermal electricity prices. It is expected that the overall sales volume of Chinese aluminum companies will remain stable this year, and profit margins will increase from a low base.