Shandong Nanshan Aluminium Co., a leading fabricator of the lightweight metal, reported a 19.4% decrease in the first half profit due to an enlarging discount of London prices to Shanghai.
Shandong Nanshan’s net profit was 313.2 million yuan ($50.8 million) in the first six months or 0.16 yuan per share, the company told Shanghai Stock Exchange today.
Aluminium prices on London Metal Exchange had been at a discount to prices on Shanghai Futures Exchange since March, with the differential widened to $310 per tonne by June, Shandong Nanshan said in its interim report.
``Such a big price differential caused much pressure on the company’s export profitability,’’ it said.
To cope with uncertainties in regard to Indonesia’s export policies from 2014, Shandong Nanshan has increased imports of bauxite from India and Guinea, and has maintained a high inventory of the raw material throughout, it said in the report.
Shangdong Nanshan’s aluminium products are widely used in both construction such as in doors, windows and curtain walls, as well as in industrial sectors such as power, high-voltage switches and pump body, according to the report.
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