Rising alumina prices pushed up costs of aluminium smelters

During the week ending October 19, aluminium spot full cost in China rose slightly to around 16,198 yuan/mt, up 46 yuan/mt WoW. This increase was mainly due to a rise in alumina spot market prices because of reduced supply. Despite increased supply causing the coal market to struggle, electricity costs in the industry remained steady due to Shandong's captive power plants slightly reducing their purchase prices. Meanwhile, aluminium spot price saw a weak adjustment, leading to a narrow fluctuation in the industry's profit. By October 19, aluminium spot price in China was about 19,110 yuan/mt, and the average immediate profit was about 2,912 yuan/mt, down 186 yuan/mt WoW. As Q4 brings peak electricity demand and the northern heating season approaches, there are expectations for reduced alumina and pre-baked anode production. Consequently, costs for raw and auxiliary materials and industrial electricity could increase, potentially raising aluminium costs further in the short term.