Chinese Aluminium Smelters’ Costs Still Have Room To Fall

SHANGHAI, May 29 (SMM) - Alumina prices maintained a downward trend, with the SMM weighed alumina index down 14 yuan/mt. During the week, coal prices fell sharply. The rainy season in south-west China is approaching. Power costs of smelters who use grid power are expected to drop in June. The real-time full costs of smelters dropped 27 yuan/mt week-on-week to 16,334 yuan/mt as of last Friday, while SMM A00 aluminium prices stood at 18,160 yuan/mt, leaving their profits at 1,826 yuan/mt, shrinking 353 yuan/mt from a week earlier.

With alumina, coal and prebaked anode prices showing no signs of stabilising, aluminium costs will still have room to fall in the short term.