The Southland Times
Tiwai Point smelter faces losses
Edited by : AL CIRCLE
1 min read
The Tiwai Point smelter has lost at least half a million dollars in aluminium production because of continuing high spot power prices.
New Zealand Aluminium Smelters general manager Ryan Cavanagh yesterday said the capacity of the smelter's production remained reduced by about five per cent, which meant "hundreds of tonnes of lost production each month".
Aluminium has been selling for about US$2155 (NZ$2602) per tonne, which means more than $500,000-worth of aluminium production has been lost since the smelter reduced its output in mid-January.
Last month, acting general manager Stewart Hamilton said the smelter was paying about $120 to $130 per megawatt on the spot market, or wholesale market – about five times the average spot price of $24/MW for the same time during the past five years.
The high price has been caused by low lake levels and Mr Cavanagh said he would continue to monitor the spot market closely.
Most of the smelter's electricity, believed to be about 90 per cent, is supplied by contract, but the remainder is bought on the spot market.
New Zealand Aluminium Smelters general manager Ryan Cavanagh yesterday said the capacity of the smelter's production remained reduced by about five per cent, which meant "hundreds of tonnes of lost production each month".
Aluminium has been selling for about US$2155 (NZ$2602) per tonne, which means more than $500,000-worth of aluminium production has been lost since the smelter reduced its output in mid-January.
Last month, acting general manager Stewart Hamilton said the smelter was paying about $120 to $130 per megawatt on the spot market, or wholesale market – about five times the average spot price of $24/MW for the same time during the past five years.
The high price has been caused by low lake levels and Mr Cavanagh said he would continue to monitor the spot market closely.
Most of the smelter's electricity, believed to be about 90 per cent, is supplied by contract, but the remainder is bought on the spot market.
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