Aluminum Corp of China (Chalco), the world's second-biggest producer of alumina, saw its dominance in the domestic sale of the raw material further eroded, as its key profit contributor faced increased competition.
Chalco yesterday said in the first three months, it produced 13.1 per cent more of the key ingredient to make aluminium than in the same period a year earlier, at 2.39 million tonnes from 2.11 million tonnes.
The output gave it a 53.1 per cent share of the nation's total 4.5 million tonnes, down from 64.4 per cent last year and 84.3 per cent in 2005.
Alumina refining accounted for 76.6 per cent of the company's operating profit last year.
The rapid erosion of Chalco's dominance was due to the coming on stream of a slew of refineries owned by local government and private entities. When Chalco floated its shares in 2001, it was the only alumina producer in the country.
Thanks to the new plants, the country's alumina output surged 62.4 per cent year on year to 4.5 million tonnes in the first quarter, up from 61 per cent to 13.7 million tonnes last year.
Compounding the effect of the declining market share, Chalco's average first-quarter alumina selling price fell 26.1 per cent year on year to 3,318 yuan a tonne.