It means aluminium smelters will have to pay an extra RMB400/t ($58/t) of primary aluminium produced, if they do not have a captive power plant.

But it remains unclear whether the price hike will be the same in all regions. Currently, the average production cost for a Chinese aluminium smelter is about RMB13500/t ($1977), RMB1600 ($234) below domestic aluminium prices.

Source: China Metals e-mail infochn@public.bta.net.cn