25 JUNE 2015AlCircle.com
15% Freight Rate cut to ease cost burden on Xinjiang Aluminum Smelters
Edited by : AL CIRCLE
1 min read
Shanghai Metals Market reports that the 15% cut on freight rate for shipping aluminum ingot out of Xinjiang effective from June 12, will cut down costs for local smelters in the midst of low aluminium price.
SMM’s research team analyses that the discounted rate will save 75 yuan on per ton of aluminium on containerized shipments and 96.3 yuan per ton on bulk rail shipments.
Due to reach coal resources in Xinjiang and low cost availability of the same, Aluminum smelters in Xinjiang enjoy low production costs compared to other aluminium producing provinces of China.
However, SMM is of the opinion that this 15% cut on freight rate for shipping aluminum ingot out of Xinjiang is not going to trigger a massive outflow of aluminium from the province.
SMM’s conclusion is based largely on two facts: Firstly, the traditional low season for aluminum consumption is setting in the country and outside. Secondly, Xinjiang has seen a growing consumption of molten aluminium recently which is cutting down on the exodus of ingot.
SMM’s research team analyses that the discounted rate will save 75 yuan on per ton of aluminium on containerized shipments and 96.3 yuan per ton on bulk rail shipments.
Due to reach coal resources in Xinjiang and low cost availability of the same, Aluminum smelters in Xinjiang enjoy low production costs compared to other aluminium producing provinces of China.
However, SMM is of the opinion that this 15% cut on freight rate for shipping aluminum ingot out of Xinjiang is not going to trigger a massive outflow of aluminium from the province.
SMM’s conclusion is based largely on two facts: Firstly, the traditional low season for aluminum consumption is setting in the country and outside. Secondly, Xinjiang has seen a growing consumption of molten aluminium recently which is cutting down on the exodus of ingot.
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