Improved profitability encouraged many domestic primary smelters to maintain steady production last month, contributing to the modest rise in output, market watchers said. According to Mysteel's monthly survey, the average profit margin among the 89 smelters under its regular tracking rose by 6.6 per cent on month to RMB 4,849per tonne in September.
The higher profits mainly stemmed from firm aluminium prices and lower production costs. For example, in September Mysteel assessed the national price for primary aluminium ingots with over 99.7 per cent purity at an average of RMB 20,767per tonne including 13 per cent VAT, up by RMB 104per tonne from August.
