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Will Plunging Cash Cost Slow Aluminum Output Cut in China?
Dec 8,2015 09:03CST
industry news
Source:SMM
Average cash cost at Chinese aluminum smelters surveyed by SMM was down 6.59% month-on-month in November.

SHANGHAI, Dec. 8 (SMM) – Average cash cost at Chinese aluminum smelters surveyed by SMM was down 6.59% month-on-month in November.

Is the cost decline attractive enough for Chinese smelters to slow production cuts or even bring idled capacity back online?

The answer is simply no, SMM aluminum analyst noted. 

In fact, capacity at the upper end of cost curve remains in losses, despite falling costs, SMM has learned. 

The drop in cash cost in November is contributed by an 8.68% fall in alumina cost, a 5.97% decline in power cost, and a 3.43% drop in prebaked anode cost. It’s worth noting that it takes time for prices declines of alumina, coal and prebaked anode to pass through to aluminum production costs.  

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