Aluminum Corporation of China (ACH) shares have nearly doubled this year as China’s economy has rebounded more quickly than expected, driving aluminum demand. Today’s gains are helped by general strength of aluminum company shares across the board.
Aluminum Corporation of China [[ACH]] shares are up nearly 6% today and nearly 97% year-to-date.
Aluminum Corporation of China extracts and processes aluminum in domestic China. The recent strength in shares of the company is largely attributable to bullish macroeconomic prospects for China’s economy as a whole. For the second-quarter, China’s GDP grew by 7.9% – with the economy more than recovering analysts expect aluminum demand to grow.
In June alone, aluminum output grew more than 5% compared to May. Besides increasing domestic demand for aluminum in China, Aluminum Corporation of China is poised to benefit from an increase in the price of industrial metals, including aluminum, this year.
Chinese aluminum smelter Yunnan Aluminum Co., not traded on a U.S. exchange, is up nearly 10% on the day while U.S.-based aluminum producer Alcoa Inc. [[AA]] is up more than 3%.
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