July 11 (Bloomberg) -- Aluminum Corp. of China Ltd., the nation's biggest producer of the metal, rose to the highest in almost three weeks in Hong Kong trading after the country's producers agreed to cut output by as much as 10 percent.

Aluminum Corp., better known as Chalco, gained 6.2 percent to HK$9.36 at the 4:10 p.m. close, the highest since June 23. Australia's Alumina Ltd. rose 7.8 percent at the 4:10 p.m. close in Sydney trading.

China's aluminum producers, the largest in the world, agreed yesterday to cut output for at least three months to ease a power shortage, sending prices to a record. The reductions may alleviate a sixth year of power shortages and curb Chinese aluminum exports that jumped 43 percent in June.

The reduction ``is very positive for aluminum prices and Chalco's share prices,'' Feng Zhang, a Hong Kong-based analyst at JPMorgan Chase & Co., said in a research report today. ``A production loss of this magnitude is likely to result in a significant rise in aluminum prices.''

Yunnan Aluminium Co., China's fourth-largest producer of the light metal, climbed 3 percent to 9.28 yuan at the 3:00 p.m. close in Shenzhen trading. Chalco's yuan-denominated shares also climbed 2.9 percent to close at 14.42 yuan in Shanghai.

Alumina Gains

Alumina, partner in the world's biggest producer of the material used to make aluminum, rose the most in five months in Sydney trading.

``Alumina is rising on the back of those aluminum talks in China,'' Eric Betts, a strategist at Nomura Ltd., said by phone from Sydney today. ``As a pure play they are the ones on the Australian market to gain the most.''

Aluminum prices jumped as much as 6 percent yesterday in London, touching a record $3,380 a ton. It rose 0.6 percent to $3,309 a ton at 4:41 p.m. Hong Kong time.

The output cut by China's top 20 smelters will equate to a maximum reduction of 400,000 metric tons in the second half, the companies said yesterday. China produced 12.6 million tons of the metal last year.

To contact the reporters on this story: Theresa Tang in Hong Kong at ttang3@bloomberg.net; Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net;

Last Updated: July 11, 2008 05:35 EDT