[Al] High-Cost Chinese Aluminum Smelters Under Growing Pressure to Cut Output

Published: Jul 13, 2015 08:58

Save

High-cost aluminum smelters in China are under growing pressure to cut output against falling aluminum prices, Shanghai Metals Market notes.

SHANGHAI, Jul. 13 (SMM) – High-cost aluminum smelters in China are under growing pressure to cut output against falling aluminum prices, Shanghai Metals Market notes.

Some 7.85 million-tpy aluminum capacity in China – 22.3% of the country’s operational aluminum capacity – were operating above the cash costs of 13,000 yuan per tonne as of the end of June, SMM statistics showed.

These capacities concentrate in Guizhou, Guangxi, Qinghai, Ningxia, Hubei, Yunnan, etc. Of them, 60% of smelters are small ones with annual capacity at less than 200,000 tonne.

A majority of these small smelters suffer from high power costs due to a lack of captive power plants, thus bearing the brunt of falling aluminum prices.

SMM spot aluminum prices hit over six-year low of 12,050 yuan per tonne on July 8.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

China aluminum costs China aluminum prices China aluminum output

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn