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Australia's Alumina annual profit halves as weak Chinese demand crimps prices

Published 25/02/2020, 10:56 am
Australia's Alumina annual profit halves as weak Chinese demand crimps prices

Feb 25 (Reuters) - Australian miner Alumina Ltd AWC.AX said on Tuesday its full-year adjusted net profit halved as weaker Chinese demand hurt prices of alumina, but added it expected some recovery in 2020.

The prolonged trade war between the United States and China during 2019 crimped demand for aluminium and drove prices down, with the company on average earning about 25% less per tonne of alumina sold compared to last year.

Excluding one-time items, net profit for the year came in at $326.6 million, down from the $689.9 million it earned a year earlier and 11% below a Jefferies estimate of $366 million.

However, the miner expects the situation to improve across 2020, given prices have already shown some stability since the start of the year.

"Aluminium demand is expected to grow in 2020 as trade friction subsides. This will contribute to a balanced alumina market and China is expected to absorb any surplus rest of world production," Chief Executive Officer Mike Ferraro said.

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