COMMENTARY--Short Term - Costs and Prices

摘要

According to our latest estimate, the average operating costs of primary aluminium smelters, measured in US dollars, were 2078 dollars/tonne (2006 dollars in 2008 Q2). For the western countries only this average was 1965 dollars (1891 dollars in 2008 Q2). The table below shows these average production costs. To cover operating costs, capital charges and earn a normal return on equity, the average primary smelter needs a price of around 2474 dollars/tonne FOB plant (2401 dollars in 2008 Q2) under current conditions. If prices fall below 2078 dollars, the average smelter is not covering operating costs.