Chinese aluminium smelters’ costs rose, largely driven by adjustments in grid electricity prices

In the week ending November 16, costs in China's aluminium industry slightly rose due to minor adjustments in grid electricity prices in regions like the southwest, along with relatively high inventories in domestic coal market and at major power plants. Coal prices primarily fluctuated within a narrow range, resulting in minimal changes in electricity costs for thermal power-reliant aluminium enterprises. SMM calculations indicate that the average electricity price in China's aluminium industry was about 0.42 yuan/kWh, up 0.007 yuan/kWh MoM. As of Nov 16, the spot full cost in China's aluminium industry was around 16,260 yuan/mt, up 84 yuan/mt MoM. Weakened spot price of aluminium resulted in a decreased immediate profit. As of November 16, China's aluminium spot price was about 18,930 yuan/mt, with the average immediate profit at around 2,670 yuan/mt, down 323 yuan/mt WoW.