According to Mysteel Aluminum Cost Model, the weighted average full cost of primary aluminum in China was Yuan 16,603/t in April, down Yuan 477/t from a month ago. The whole sector faced an average profit of Yuan 2,104/t, up Yuan 811/t from March. The decrease in anode and power cost continued to drag down aluminum production cost.
Data: Mysteel
The weighted average captive power price was down about 4% on month to Yuan 0.432/kWh in April, which means a decrease of Yuan 219/t in power cost for those capacities using captive power.
The weighted average grid power price was down about 2% on month to Yuan 0.479/kWh in April. For those capacities relying on grid power, there was a decrease of Yuan 156/t in power cost.
Data: Mysteel
There was a slight decrease in alumina prices in April due to oversupply. Restarts and new commissioning put China's alumina supply higher. However, the recovery on the demand side remained slow, which made the market still in surplus.
Data: Mysteel
Anode price was still on a downward trajectory in April. The decrease was mainly due to falling raw materials prices and weak demand. A major aluminum company in Shandong lowered its purchase price of anode to Yuan 5,375/t in April, down Yuan 520/t from a month ago.
Data: Mysteel
Based on the aluminum price and the full cost in April, only 3% of aluminum capacity in China was unprofitable, lower than March's 14.7%. All smelting capacity was profitable based on the cash cost.
Data: Mysteel
Data: Mysteel
Mysteel expects that aluminum cost will see a further decline in May due to the decrease in alumina, anode and power costs.