Huatong Cable shares hit the daily upper limit yesterday and the lower limit
today. On July 6 reports said the company's Angola electrolytic aluminium Phase
II project was accelerating; market participants flagged a significant inventory
build in 2025 and large working-capital tied up in copper and aluminium. Huatong
said “accelerating” was not the company's wording and the project is progressing
as planned. The company said it prepays for copper and aluminium while
downstream collections are cyclical, calling this an industry-wide feature.
Copper and aluminium account for roughly 90% of total costs; Huatong said it
will pass raw-material price increases downstream but repricing cycles vary by
region and customer. It also cited exposure to higher shipping costs,
raw-material price swings and foreign-exchange volatility from its overseas
business.
