Profitability of Smelters Improved amid Stable Costs and Rising Aluminium Prices

SHANGHAI, Aug 1 (SMM) - The average cost of aluminium smelters was basically flat from a week ago at 18,020 yuan/mt as of last Friday, while the real-time profit of smelters expanded 634 yuan/mt to 600 yuan/mt as the SMM A00 aluminium prices jumped to 18,620 yuan/mt. In the short term, the prices of domestic thermal coal are expected to drop after the peak of electricity consumption comes to an end, which will allow the electricity costs of smelters to drop slightly. Meanwhile, the prices of auxiliary materials such as prebaked anode may fall back. Therefore, the costs of smelters are likely to fall in August.