Iceland alumina import likely to increase in 2018; Brazil to be the top exporter

Besides fish and tourism, aluminium is emerging as one of the significant industries in Iceland. According to the report, aluminium had a share of about 16 per cent to the country’s total export in the year 2017. There were three plans in operation with a total capacity of over 800,000 tonnes per year, putting Iceland at the 11^th place among aluminium-producing nations worldwide. The presence of abundant electrical power due to Iceland's geothermal and hydroelectric energy sources has led to the growth of this manufacturing sector. 

This indicates the significant of alumina import for the country which is entirely dependent on alumina to feed its smelters. According to the global export-import data, Iceland in 2018 is estimated to import around 1.713 million tonnes, up 1.54 per cent from 1.687 million tonnes in 2017. But although the alumina import volume is estimated to rise this year from the previous one, it would still stand low from that of 2016 as the country in the said year had imported about 1.885 million tonnes, 11 per cent higher from 2017 and 10 per cent higher from 2018.

Nevertheless, the import cost in 2016 stood low for Iceland both from 2017 and from the estimated cost of 2018. Iceland had spent around US$ 465 million to import 1.885 million tonnes of alumina. In 2017, the volume dropped but not the import cost while it stood at US$ 598 million. For 2018, the estimated import cost is at US$ 731 million, 57 per cent up from 2016 and 22 per cent up from 2017.

Unlike 2016 and 2017 when Australia was the top exporter of alumina to Iceland, this year Brazil is expected to be the mainstay by exporting around 718,900 tonnes. Australia is expected to follow next by exporting 617,730 tonnes and then Jamaica 238,413 tonnes. In 2016 and 2017, Australia had exported 697,537 tonnes and 661,579 tonnes while Brazil had exported 537,515 tonnes and 629,794 tonnes, respectively.