The Zhitong Finance App learned that aluminum stocks rose in the afternoon. As of press release, China's Hongqiao (01378) rose 4.5% to HK$11.62; China Aluminum (02600) rose 2.96% to HK$5.56; and Xingfa Aluminum (00098) rose 0.13% to HK$7.96.
Guolian Securities released a research report saying that many factors suppressing metal prices in 2024 are expected to be mitigated, and the pace of global economic recovery in the post-pandemic era may become the core of non-ferrous metal pricing. Guojin Securities, on the other hand, said that the gap in expectations for the electrolytic aluminum sector is still large. Recently, domestic real estate support policies have continued to be strengthened, and the equity market's pessimistic expectations about the demand for electrolytic aluminum on the real estate side are expected to recover.
Citi released a research report that due to strong demand and still tight supply, China Aluminum's profit margin is likely to remain high for a longer period of time. HSBC, on the other hand, said that China Aluminum benefited from rising aluminum prices and falling raw material costs. Profit margins improved markedly, and its performance outperformed. Earnings in the first quarter exceeded expectations, and production and sales remained resilient during the off-season. The bank expects that in the face of strong demand for the energy transition, supply increases will be limited, so China Aluminum's profit margin will remain high. It is also estimated that the profit margins of aluminum companies in China will expand strongly this year, and the situation may continue until next year.