China to Impose Power Tariffs on Aluminum Smelters

China will impose tiered power rates on aluminum smelters, starting on January 1, as part of its efforts to address severe overcapacity in the industry, Shanghai Metals Market reported.

As quoted in the market news:

Power tariffs for aluminum smelters will be based on the amount of power used in the previous year. Power tariffs will remain unchanged for smelters that use no more than 13,700 KWH of AC power for per ton aluminum liquid produced, while those that use between 13,700-13,800 KWH will be charged an additional 0.02 yuan per KWH. Smelters that consume more than 13,800 KWH for per ton aluminum liquid produced will be charged an additional 0.08 yuan per KWH, according to the Notice of Tiered Power Rates for Aluminum Smelters jointly released by the National Development & Reform Commission (NDRC) and Ministry of Industry & Information Technology (MIIT).

Over 1.2 million tpy in aluminum capacity was slashed in China in 2013. Further capacity cuts may be on the way next year given the sluggishness in the sector.

Read the full article in Shanghai Metals Market (subscription required)