We have re-modelled Chinese aluminium energy costs in light of the recent reduction of on-grid power tariffs and found that the net impact to the average cash cost to local aluminium smelters is minimal. China's weighted average cash costs are expected to decline by just US$10/t following the reduction, to US$1868/t. This corresponds to a saving of US$310 million, which appears significant but not in an industry worth tens of billions of dollars.
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Insight | Apr 2015
Aluminium: the impact of lower on-grid power tariffs in China
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