According to Mysteel Aluminum Cost Model, the weighted average cost of primary aluminum in China was Yuan 17080/t in March, down Yuan 157/t from a month ago. The whole sector faced an average profit of Yuan 1293/t, down from Feb's Yuan 1416/t. The decrease in anode cost dragged down aluminum production cost.
Data: Mysteel
The weighted average captive power price was down 3% on month to Yuan 0.449/kWh in Mar, which means a decrease of Yuan 187/t in power cost for those capacities using captive power.
The weighted average grid power price was down 0.8% on month to Yuan 0.49/kWh in Mar. For those capacities relying on grid power, there was a decrease of Yuan 47.8/t in power cost.
Data: Mysteel
There was a slight decrease in alumina price in March. Weak alumina demand in southwest China and rising alumina capacity and production weighted on alumina market. Power-related aluminum production loss in Yunnan and slow restarts in Sichuan, Guizhou and Guangxi led to weak alumina demand in southwest region.
Data: Mysteel
Anode price was still on a downward trajectory in March. The decrease was mainly due to falling raw materials prices. A major aluminum company in Shandong lowered its purchase price of anode to Yuan 5895/t in March, down Yuan25/t from a month ago.
Data: Mysteel
Based on the aluminum price and the cost in Mar, 14.7% of aluminum capacity in China was unprofitable, higher than Feb's 13.3%.
Data: Mysteel
Data: Mysteel
Mysteel expects that aluminum cost will see a further decline in April due to the decrease in alumina, anode and power costs.
