Iceland’s total alumina import and import from Australia to grow in 2019 after declining last year

The presence of abundant electrical power in Iceland due to geothermal and hydroelectric energy sources has been buoying the aluminium production in Iceland. Aluminium producers like Alcoa and Century Aluminium which have closed smelters in the U.S. are still running facilities in Iceland, mostly because of the cheaper hydroelectricity in the country. Needless to say, this demands the heavy supply of alumina as well, which Iceland secures from various parts of the world, mostly from Australia.

{newsStudioGallery}

Here in the below graph you will see a comparative study between Iceland’s total alumina import and the import from Australia.

As per the global-export import data, Iceland in 2016 obtained1.07 million tonnes of alumina from all over the world, out of which 288,134 tonnes came from Australia. In 2017, the total import volume increased 73 per cent to 1.85 million tonnes, in tandem to which the import from Australia rose 130 per cent to 662,361 tonnes. But in 2018 Iceland’s total alumina import volume plunged to 1.58 million tonnes and that from Australia to 571,763 tonnes, according to the global data. However, in 2019, Iceland’s total import volume as well as the import from Australia is expected to grow 8 per cent year-on-year to 1.70 million tonnes and 616,428 tonnes, respectively.

Now, coming to the cost, Iceland in 2016 approximately spent US$290 million for its total alumina import, out which the import from Australia valued at US$78 million. In 2017, the costs grew in consequence of the growth in volume to US$659 million and US$227 million, up 127 per cent and 191 per cent.

The growing trend in import cost continued in 2018 as well, despite a fall in import volume, found the global data. Iceland’s total alumina import cost amounted to US$818 million, while that from Australia US$298 million, compared to US$659 million and US$227 million in the previous year. In 2019, the country is expected to record further growth in its both total import cost and the cost from Australia to US$890 million and US$321 million, up 9 per cent and 8 per cent year on year.