Iceland, this tiny island country which was once known only for its huge fish production and export is the new hub for aluminium and on the way to produce more aluminium in 2017 than the United States in the same way like two other countries with hydropower- Canada and Norway. Major Aluminium producers like Alcoa and Century Aluminum which have closed smelters in the U.S. have their smelters running in Iceland, mostly because of the cheaper hydroelectricity in the country.
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{alcircleadd}This indicates the significant of alumina import for the country which is entirely dependent on alumina to feed its smelters. There are currently three aluminium smelters in operation with a total capacity of over 800,000tpy, which puts Iceland at the 11th position among aluminium-producing countries worldwide.
As our data shows, Iceland imported about 1.64 million tonnes of alumina in 2015. The amount slightly jumped up in 2016 to reach 1.65 million tonnes. In 2017, the amount is estimated to be about 1.4 million tonnes. Since, the major aluminium smelter owner in Iceland like Rio Tinto, Alcoa and Century are currently squeezing their capacity on unprofitability and are sceptical on capacity expansion, the outlook for alumina import is lying low for the year. The estimated amount for 2017 may increase if the aluminium prices improve in the third and fourth quarter of 2017.
The value of the total alumina import stood at USD 518 million and 428 million in 2015 and 2016 respectively. The downward curve is driven by the falling alumina prices in the international market in last two years. However, in 2017, the value of import is estimated to increase if alumina supply gets tight and price goes up.
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As shown by the data for 2016, the top alumina exporting countries to Iceland are Australia, USA and Brazil. Alcoa and Rio have their alumina facilities in Australia and USA, from which they supply alumina to their smelters in Iceland. The rest are supplied majorly by Brazil and a few more alumina refining countries like Jamaica, China, and Ireland etc.
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