Will rising power costs slow new aluminium capacity in China? SMM reports

Aluminum smelters in China that rely on captive power are now troubled by rising power costs as coal prices keep rising, and this situation is unlikely to ease anytime soon.

Will this slow down the pace of new aluminium capacity commissioning in China?

Despite higher power costs, new aluminium projects will proceed as scheduled since there is still large room for profit, SMM noted.

It’s worth pointing out that some smelters in Xinjiang and Gansu that have captive coal mines reported little change in power costs, SMM learned.

Average profit at Chinese aluminium smelters surveyed by SMM remains at above 1,600 yuan/tonne this past week.

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