Metals News
Chinese Aluminum Smelters to Face Higher Costs in 2Q 2016, SMM Says at Summit
industry news
Mar 22,2016

SHANGHAI, Mar. 22 (SMM) – Chinese aluminum will face growing costs in the second quarter of 2016, SMM says at the recent 2016 Copper&Aluminum Summit in Shanghai.  

Cost increase will come from power and alumina, SMM aluminum analyst Liu Xiaolei noted. 

Coal prices tumbled 30% last year, but stopped falling after the 2016 Chinese New Year holiday. In fact, many regions saw coal prices show signs of recovery, which will push up power costs, Liu explained. 

In addition, alumina prices rose rapidly in March and have gained about 300 yuan per tonne from December last year, a trend to continue for foreseeable future, Liu predicted. 

As of March 21, alumina in north China was offered at 1,935 yuan per tonne on average, SMM data showed.

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