12 NOVEMBER 2015AlCircle.com
Power tariff cuts and falling coal prices to keep Chinese aluminium smelters productive
Edited by : AL CIRCLE
1 min read
Aluminium prices in China, presently the biggest exporter of the metal across global markets, are nowhere near bottom even when they are now just one step to 10,000 yuan per tonne.
Despite spurious production cuts here and there, the country’s aluminium output has been hitting new highs. China produced 21.07 million tonnes of aluminium during January-August, a 12.2% jump from a year ago, data from the China Non-Ferrous Metals Industry Association (CNIA) showed.
It is learned from industry sources that power tariffs for aluminium smelters in Gansu, Ningxia and Qinghai will be pared down from 0.35-0.37 yuan/Kwh to 0.25 yuan/Kwh, equating to 1,300 yuan cost savings per tonne of aluminium produced.
Power tariffs at most Chinese aluminium smelters averaged over 0.35 yuan/Kwh in October.
Falling coal prices also mean there is still room for aluminium costs to drop, observe analysts.
Despite spurious production cuts here and there, the country’s aluminium output has been hitting new highs. China produced 21.07 million tonnes of aluminium during January-August, a 12.2% jump from a year ago, data from the China Non-Ferrous Metals Industry Association (CNIA) showed.
It is learned from industry sources that power tariffs for aluminium smelters in Gansu, Ningxia and Qinghai will be pared down from 0.35-0.37 yuan/Kwh to 0.25 yuan/Kwh, equating to 1,300 yuan cost savings per tonne of aluminium produced.
Power tariffs at most Chinese aluminium smelters averaged over 0.35 yuan/Kwh in October.
Falling coal prices also mean there is still room for aluminium costs to drop, observe analysts.
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