Australia's aluminium shipments decline following production cuts at smelters

The aluminium industry of Australia represents a highly vertically integrated system comprising bauxite mines, alumina refineries and four major aluminium smelters- all operated by the biggest names in the global aluminium industry. In 2015-16, Australia produced 1.6 million tonnes of aluminium creating exports of US$3.8 billion. The country has also been importing a lot of the metal to feed its growing downstream aluminium sector. However, looking at the export-import data for the last three years, it can be easily inferred that the island country remains a net exporter of aluminium. In 2015, Australia ranked as the 4th largest aluminium exporter of the world.

Aluminium Export by Australia

Australia's aluminium exports have been declining over the last three years. The Kurri Kurri (NSW) Hydro Aluminium-controlled smelter closed in October 2012, and in July 2014, Alcoa shut down their Point Henry smelter in Victoria. This impacted the export volume rather significantly. In 2016, Australia shipped around 1.3 million tonnes of aluminium, down 18 per cent from the previous year. In 2017 (till October), the country is estimated to export around 1.05 million tonnes of the lightmetal.

Value-wise realization from aluminium exports in Australia declined from US$3.02 billion in 2015 to about US$2 billion in 2016. In 2017, the total value of aluminium exports is estimated to reach US$1.5 billion.

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Aluminium Import in Australia

Australia's aluminium imports have been on a rise over the last three years. The country imported 55643.6 tonnes of aluminium ingots in 2015, which increased to total at 59212.05 tonnes in 2016. In 2017, till October, the country is estimated to purchase around 50244.68 tonnes of aluminium from international sellers, marking a year-on-year rise for the corresponding period.

The cost of aluminium imports in Australia has declined too. In 2015, the total aluminium import was valued at US$120.82 million which dropped to total at US$108.2 million in 2016. In 2017, the value is estimated to remain fairly unchanged at US$109.8 million from the corresponding period previous year.