26 APRIL 2016Shanghai Metals Market
Chinese aluminium smelters to face higher power costs
Edited by : AL CIRCLE
1 min read
Profit at Chinese aluminium smelters kept expanding, but now is not the time to cheer up yet, SMM noted.
Power tariff subsidies to smelters in Qinghai have been cut following aluminium price gains. This, together with rising alumina prices, will deter smelters in Qinghai from bringing idled capacity back online, SMM expects.
No adjustments have been made in power tariff subsidies to smelters in Gansu, but previous power tariff subsidies have not been fully in place, SMM learned.
Besides, rising coal prices will add to power costs at smelters with captive power, SMM added.
With aluminium prices rising above 12,200 yuan per tonne, profit at Chinese aluminium smelters surveyed by SMM has expanded to more than 1,200 yuan per tonne.
Power tariff subsidies to smelters in Qinghai have been cut following aluminium price gains. This, together with rising alumina prices, will deter smelters in Qinghai from bringing idled capacity back online, SMM expects.
No adjustments have been made in power tariff subsidies to smelters in Gansu, but previous power tariff subsidies have not been fully in place, SMM learned.
Besides, rising coal prices will add to power costs at smelters with captive power, SMM added.
With aluminium prices rising above 12,200 yuan per tonne, profit at Chinese aluminium smelters surveyed by SMM has expanded to more than 1,200 yuan per tonne.
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