SHANGHAI, Nov. 6 (CBI China) -- According to CBI sources, the into-factory price of steam coal (5500 kcal) is about RMB 550/mt in Henan Province, while it was above RMB 900/mt as CBI reported at the end of August. In just two months, the price of steam coal has ridden a roller coaster. Looking from the cost point of view, the price decline of RMB 350/mt in steam coal affected electricity costs more than RMB 0.2/kwh, or RMB 3,000/mt in refined Aluminum costs. In accordance with CBI previous survey, about 87% of refined aluminum capacity in Henan Province used electricity from self-owned power plant, and remove the influence from long-term coal agreement, CBI expects current average electricity cost in Henan province fell RMB 1,200/mt than by the end of August, down over 16% in two months. Coupled with recent sharp drop of alumina and accessories prices, cost of refined aluminum for the time being has plunged significantly, some producers even kept cash cost at RMB 14,000 /mt.
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