SHANGHAI, Sep 13 (SMM) - Despite falling alumina and aluminium fluoride prices, smelters’ costs increased as a result of rising electricity prices. The real-time cost of smelters rose to 18,024 yuan/mt as of last Friday, while the real-time profit expanded 673 yuan/mt from a week ago to 776 yuan/mt as aluminium price hike outpaced the costs. The SMM A00 aluminium prices stood at 18,800 yuan/mt.
The costs of smelters will remain high in the short term amid firm electricity prices and limited drop in alumina prices. As aluminium prices are bullish due to fears of power rationing in Yunnan, the profits of smelters may improve further.
