(Reuters) – Aluminum Corp of China Ltd stated Tuesday that their quarterly net profits were more than five times higher year over year. This was due to the buoyant prices of aluminium and alumina.

Chalco, a state-controlled company that is controlled by the government, reported third quarter net income of 2.23 billion Yuan (349 Million), an increase of around 430% over the adjusted 421.25million yuan earned a year ago.

Chalco saw an increase of almost 6% in profit from its second quarter. This was Chalco’s highest result since the 4.79 billion yuan net income recorded in the fourth quarter 2013. Refinitiv Eikon data indicate.

As Shanghai aluminum prices rose to new heights, the third quarter revenues rose 51.3% to 74.19 trillion yuan. Due to electricity shortages, the rally saw a rise in revenues of 51.3% year-on-year to 74.19 billion yuan. Shanghai aluminium prices soared to their highest level since 2008.

However, Chalco’s production wasn’t affected by the changes in its operations. According to the company, it had produced 2.92million tonnes of primary aluminumm between January and September. This is 5.8% more than last year. This means that 960,000 tonnes of primary aluminium were produced in the third quarter, an increase of 6.7% over last year.

Shanghai Aluminium has seen a 7% drop in this month’s price as China intensifies its efforts to reduce high prices of coal. This is the primary source of energy for highly-intensive aluminum smelting.

However, spot prices of alumina in China are still at 76% above the 4,000 Yuan per tonne mark, according to industry data provider SMM. This is the highest record going back as far as 2012.

Chalco, world’s largest producer of alumina, reported 12.17 million tonnes in 2021. That is 13.3% higher year-on-year. Chalco also indicated that 3.92 million tonnes were produced for the third quarter of the year, an increase of around 10.7%.

($1 = 6.38178 renminbi)