Last week till October 12, Shanghai Metals Market observed a rise in domestic aluminium spot cost backed by a strong performance of the alumina spot market. There was also a minor increase in power cost as captive power plants of mainstream aluminium smelters raised bid prices for coal purchases.
Electricity prices in the southwest region also grew, causing a rise in the average electricity cost of domestic aluminium by RMB 0.006 per kWh to RMB 0.413 kWh.
Thus, the domestic aluminium cost grew by RMB 130 per tonne from the pre-holiday level to around RMB 16,151 per tonne. Meanwhile, the aluminium spot price fell back-to-back for four days, resulting in an immediate profit fall for smelters.
On October 12, the domestic aluminium spot price was RMB 19,250 per tonne and the average spot profit was RMB 3,099 per tonne, down by RMB 730 per tonne from the pre-holiday level.
US employment data falls short of expectations, aluminium ingot continues destocking trend this week
