According to Mysteel Aluminum Cost Model, the weighted average cost of primary aluminum in China was Yuan 17269/t in January, down Yuan 276/t from a month ago. The whole sector faced an average profit of Yuan 1063/t, down from Dec's Yuan 1461/t. Despite rising alumina cost, the decrease in power and anode cost dragged down aluminum production cost in January.
Data: Mysteel
The weighted average captive power price was down 5.9% on month to Yuan 0.4318/kWh in Jan, which means a decrease of Yuan 366/t in power cost for those capacities using captive power.
The weighted average grid power price was up 0.8% on month to Yuan 0.4897/kWh in Jan. For those capacities relying on grid power, there was an average growth of around Yuan 51/t in power cost.
Data: Mysteel
The decrease in aluminum price was greater than the cost decline, leading to a decrease in the margin for the whole sector. Based on the aluminum price and the cost in Jan, 17.7% of aluminum capacity in China was unprofitable, higher than Dec's 14.3%.