Resilient aluminium prices set to boost Asia’s smelters over global rivals: analysts
Cheaper power and easier access to raw materials can benefit low-cost producers in China, India, Indonesia
[SINGAPORE] Higher aluminium prices could position smelters operating at a low cost in China, India and Indonesia to sustain stronger margins than their global counterparts, industry observers told The Business Times. This is given that cheaper power and relatively competitive raw material sourcing in these Asian countries present these companies an advantage.
That could strengthen Asia’s grip on supplying aluminium to industries such as construction, electric vehicles and renewable energy, as these low-cost producers reinvest stronger profits into expansion and long-term customer relationships, they added.
Although the industrial metal’s price has retreated from a four-year high on the expected return of Middle Eastern supply, analysts noted that prices are likely to remain elevated in the near term.
