HK Stock Market Move | Aluminum Corporation of China (02600) falls more than 4%, bottleneck issue in alumina supply expected to be resolved. Citi says poor performance may put pressure on stock price.

Aluminum Corporation Of China (02600) fell by more than 4%, as of the time of writing, it has fallen by 4.74% to 5.23 Hong Kong dollars, with a turnover of 98.02 million Hong Kong dollars. On the news front, the relevant person in charge of the China Nonferrous Metals Industry Association answered questions from reporters about the current aluminum oxide market: "We believe that there are irrational factors in the trend of aluminum oxide prices, and there is significant speculation and speculation. According to current cost and price calculations, the average profit of the aluminum oxide industry exceeds 2000 yuan/ton, which is unsustainable and should not continue." HSBC research report pointed out that the bottleneck problem of aluminum oxide supply will gradually be resolved as the peak season has passed, and some unfavorable factors are expected in the near future. However, the bank still remains optimistic about the aluminum price next year, expecting marginal profits to continue to rise, with valuation remaining low. Citigroup previously stated that the gross profit of China Aluminum in the third quarter of this year fell by 16% year-on-year and by 39% quarter-on-quarter, mainly due to adjustments in aluminum smelting asset depreciation, electricity surcharge adjustments, and bauxite reserve adjustments. The bank believes that poor performance may lead to short-term profit-taking pressures on the stock, thus suspending its positive catalyst observation.