Based on data provided by Baichuan Yingfu, the average tax-inclusive total cost of China's alumina industry in November 2023 was RMB 2685.91 per tonne. This is a drop of RMB 38.61 per tonne compared to October 2023, a month-on-month decline of 1.42 per cent and a year-on-year decline of 3.80 per cent. In November, the supply of domestically produced bauxite in China increased, contributing to the continued rise in price centre.
Regarding ore imports, the market trade pattern primarily relies on implementing initial contracts, resulting in elevated prices. As for liquid alkali, the prices in the Chinese market initially declined, followed by a rise in November. However, the restricted price growth in the latter period resulted from the average performance of overall demand. Consequently, the average price in November saw a significant fall compared to October.
The attitude in the port coal market for thermal coal improved in November but then collapsed, resulting in overall low market activity. Thus, although there was a rise in port coal prices, it was of little significance. In November, the reduction in alkali consumption expenses resulted in a fall in the cost centre of China's alumina sector.
In November 2023, the average comprehensive electricity price for China's electrolytic aluminium industry, as reported by Baichuan Yingfu, was RMB 0.4375 kilowatt per hour. This represented a 3.09 per cent increase compared to the previous month's price of RMB 0.4244 kilowatt per hour in October 2023. Additionally, there was a year-on-year decrease of 5.3 per cent.
The mean yearly electricity price was 0.4432 yuan per kilowatt hour. Coal prices are subject to a specific lagging impact from electricity costs. In October, the market price of thermal coal exhibited a fluctuating trend, first rising and then declining, resulting in a net rise when compared to September. During the first phase, there has been a surge in demand for replenishment in the construction materials business, leading to a favourable market trading environment and subsequently driving up the price of thermal coal.
As the downstream procurement pace slows, there is considerable opposition to coal prices, and thermal coal prices have declined marginally. However, the price of thermal coal has risen since September, raising the cost of self-owned power. Water and electricity prices have increased dramatically throughout the regular water season regarding grid power. Overall, power prices climbed in November compared to October. With the formal start of the dry season in the Yunnan area in December, hydropower costs are projected to rise further, although thermal power prices may fall owing to the influence of coal prices.
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