SMM

SHANGHAI, Oct 17 (SMM) - Firm electricity prices kept the costs of aluminium smelters at highs last week. With the arrival of dry season, the hydropower costs in Sichuan and Yunnan will go up. Alumina prices continued to fall last week, while prebaked anode prices rose 180 yuan/mt. The full costs of smelters rose 82 yuan/mt from pre-holiday level to 17,959 yuan/mt as of last Friday, while the profits expanded 278 yuan/mt to 741 yuan/mt amid rising aluminium prices, which stood at 18,700 yuan/mt. After the depletion of cheaper coal stockpiles, the power costs of smelters will rise. Despite weak alumina prices, the downside room of aluminium costs will be limited in the short term.