Chinese Aluminium Smelters’ Costs to Fall in the Short Term

SHANGHAI, Mar 27 (SMM) – Despite the recent wild swing in spot coal prices, thermal power plants' coal purchase prices under long-term contracts were little changed. Some smelters with captive power plants held sufficient coal stocks and bought on the dip. The thermal power costs of smelters will remain largely stable in the short term, while hydropower prices in south-west China will stay at highs in the dry season. Prebaked anode prices are at risk of steep decline in the absence of cost support, which could drive down the costs of smelters.