Rise in Cost for Electrolytic Aluminum Puts Pressure on Aluminum Enterprises

[China Aluminum Network] September 13, in the smelting process of electrolytic aluminum, electric power and aluminum oxide are the mainly two costs which occupy 35%-40% of the total cost. Currently the average power consumption for electrolytic aluminum industry is14500 KWH/ton.  

With the implementation of the government policies such as the cancel of favorable electric price and the cut in export rebate rate, electrolytic aluminum industry has stepped into an austerity stage. Some small and medium-sized aluminum enterprises have to be knocked out. The reason for electrolytic aluminum industry being limited by the government’s industrial policy is that the raw material aluminum oxide is in shortage. Aluminum oxide mainly depends on import. This leads to the sustained rise in the international aluminum oxide price and high cost for domestic electrolytic aluminum. Many enterprises express that overcapacity of electrolytic aluminum and government’s regulation prevent the rise of aluminum price.

      More than 30% of domestic aluminum companies have been closed this year.

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