Australia remains the top alumina exporter in the years 2015-2016

AL Circle

The global demand for alumina, the prime raw material for aluminium is growing like never before with faster growth in aluminium production. Recently Alcoa, during its earnings announcement said that it expects a 4 per cent growth in global aluminium demand in 2017. The world will continue to see strong demand growth for alumina particularly in China and the Middle East countries.  

It opens up new trading opportunities for the alumina producing countries around the world and especially for the net exporters of alumina. Australia is a substantial producer of alumina, accounting for over 20% of world production. The major players in the Alumina Production industry are vertically integrated, with Alcoa, Rio Tinto, and South32 all having interests in the upstream Bauxite Mining and downstream Aluminium Smelting industries. Local aluminium smelters had been closing doors in past five years due to low aluminium prices. As domestic demand has fallen, the alumina production industry has started driving majority of its revenue from exports putting Australia on top among the alumina exporters.

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Hydro’s Alunorte is the world's largest alumina refinery and is located in Pará, Brazil. After 20 years in operation, the company supplies the domestic and international markets with an annual production capacity of 6.2 million tons. On average, 14% of its production goes to the domestic market and the other 86 % goes for export. Currently, Hydro Alunorte exports its products to ten countries in the Middle East, North America and Europe.

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Four domestic Bayer-process refineries in the U.S. has a combined alumina production capacity of 5.6 million tons per year and the actual production stands at about 4 million tons of which 2 million tons are exported internationally . China's alumina capacity stands at about 61 million tons but, the country produces around 47.3 million tonnes of the aluminium-making ingredient yearly. The country boasts world’s top alumina producers like Aluminum Corp of China (CHALCO), Shandong Xinfa Aluminium Group and China Hongqiao Group.  Most of the alumina produced is consumed domestically and some amount of it is exported globally.

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As the data shows, in 2015, Australia exported 20 million tons of alumina globally. The alumina export delivered USD 5.9 billion revenue to the exporters. In 2016 , the country is estimated to export 16 million tons of alumina globally with a revenue realization of USD 3.8 billion. For the first ten months of 2017, Australia is estimated to export 7 million tons of alumina.

Compared to Australia, Brazil exported 8.4 million tons of alumina globally. The alumina export delivered USD 2.6 billion revenue to the exporters. In 2016 too, the country is estimated to export 8.4 million tons of alumina globally with a revenue realization of USD 5.1 billion. For the first ten months of 2017, Brazil is estimated to export 7.4 million tons of alumina.

US exported 2 million tons of alumina globally in 2015. The alumina export delivered USD 871 million revenue to the exporters. In 2016, the U.S is estimated to export 1.7 tons of alumina globally with a revenue realization of USD 693 million. For the first ten months of 2017, the U.S is estimated to export 1.3 million tons of alumina.

In 2015, China exported 417695 tons of alumina globally. The alumina export delivered USD 251 million revenue to the exporters. In 2016, China is estimated to export 482141tons of alumina globally with a revenue realization of USD 277 million. For the first ten months of 2017, China is estimated to export 416015 tons of alumina.

The data shows a drop in export by Australian exporters and a constant increase in the alumina price at the international market.

 

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