Aluminium smelter production costs in Henan Province rose due to the increase of electricity price

According to sources in Hong Kong on May 5: Smelter high-ranking officials said the aluminum smelter located in Henan paid more than 6% of the electric power fee. This smelter was in the margin of loss and will be encouraged to reduce productivity.

A management staff of a large smelter in Henan expressed " from May 1st, an increase of electric power fee of 0.025 yuan/ Per kW will be charged. It is about 400yuan/per ton." He said price increase will apply to all industrial users in Henan Province. Thermal power plant will therefore offset the rising cost of coal and maintain the normal operation.

Qinhuang dao, China’s largest coal port, reported that last week the increase of coal price was about 2%. It is expected to rise further because before the summer peak of electricity use, Chinese power plants will enlarge purchase to build their stock.

On Monday, Henan government said on internet, when electricity supply was 20-25% lower than total demand, Hennan province would limit the supply for smelters. When the shortage reached over 25%, they will ask smelters to close. The rise of electricity fee generated great impact on smelters productivity, because it took up around 40% of total production cost.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.