China Aluminum Costs to Continue Falling After Deep Declines in December

Published: Jan 9, 2016 12:38

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There is still room to fall for costs at Chinese aluminum smelters in January, SMM says.

SHANGHAI, Jan. 9 (SMM) – There is still room to fall for costs at Chinese aluminum smelters in January, SMM says.
The downside room will be limited, though, SMM understands. Prices for alumina and prebaked anode will unlikely see sharp declines due to cost support. Power tariff subsidies by local governments will not be as much as before.
Alumina cost at Chinese aluminum smelters fell 8.68% MoM in December, versus 3.43% drop for prebaked anode cost, and 5.97% decline for power cost, SMM statistics showed. Power tariffs subsidies in Qinghai, Gansu, Xinjiang and Yunnan allowed power costs to fall at aluminum smelters.
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