Power Costs Vary Greatly for Aluminum Smelters in Different Parts of China

SHANGHAI, May 17 (SMM) – Aluminum smelters in Yunnan secured cheaper power, while their rivals in other regions are facing higher power costs, SMM learns. 

Some smelters in Yunnan, such as Yunnan Aluminum Co., who bought power directly from power plants, said power tariffs were cut 0.04 yuan per kwh to 0.31 yuan per kwh, helping save power costs by over 500 yuan per tonne.

Preferential margins were cut for power tariffs to aluminum smelters in Qinghai. 

Mine-mouth coal prices in Inner Mongolia’s Ordos, Shaanxi’s Yulin, and Shanxi’s Datong rose 5-10 yuan per tonne or 3-5% month-on-month in early May, which will add to power costs at local aluminum smelters with captive power plants.

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