UPDATE 1-RUSAL Q2 net profit down 70 pct on yr
* Q2 net profit $339 mln vs $470 mln forecast
* Sees aluminium demand, prices continuing to rise
* HK shares down 33 pct this year, underperform index
HONG KONG, Aug 29 (Reuters) - Russia's United Company RUSAL Plc , the world's top aluminium producer, on Monday reported a sharper than expected 70 percent drop in net profit in the second quarter on non-cash items and as cost inflation offset higher prices and output.
RUSAL , which competes with U.S. aluminium maker Alcoa Inc , said it expected demand for aluminium to continue to strengthen on increased penetration in consumer markets as well as further price support based on cost inflation, including raw materials, power and labour.
The company forecast London Metal Exchange aluminium prices would trade between $2,500-$2,600 per tonne for the rest of 2011.
LME aluminium rose 0.27 percent on Friday to $2,380 per tonne.
RUSAL posted a net profit of $339 million for the three months ended June, compared with an average forecast of $470 million from 8 analysts polled by Reuters Продолжение...