Electricity Fee Adjustments Increase Steel Production Costs in China
OREANDA-NEWS. December 07, 2011. The National Development and Reform Commission announced on November 30 that China will raise retail power prices by an average 0.03 yuan a kilowatt-hour and on-grid electricity prices by 0.026 yuan.
The upward revisions would translate into an increase of 13.50 yuan a ton in the production cost of the steel sector nationwide, which on average consumed 442.74 kilowatts per hour per ton last year.
Experts noted small mills will be affected harder than larger ones, since the majority of large-sized producers have their own power generators capable of supplying about half of their total electricity consumption.
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