South Africa’s alumina import to rise in 2019 after a drop last year

The aluminium industry in South Africa is one of the driving forces of the country’s economy. Along with the economic impact and contribution to the fiscus, the industry generates significant foreign exchange revenues and provides an estimated 11,600 employees in the sector with decent jobs. Manufacturing of aluminium products and components play a vital role in the architectural, building and construction, automotive, transport, consumer durable, electrical, packaging, chemical and explosives, and general engineering sectors. In March 2019, the total aluminium production in South Africa was at 89,000 tonnes.

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Since the aluminium supply chain commences with the primary smelters producing 99.7% pure aluminium from alumina, South Africa imports a large amount of the ore. According to the global export-import data, South Africa in 2016 had imported around 1.28 million tonnes of alumina, which in the succeeding year (2017) increased significantly by 117 per cent to 2.78 million tonnes (approx.). In the year next (2018), the amount dropped to 2.54 million tonnes, which however, is expected not to continue in 2019. According to the available data, South Africa’s alumina import is estimated to rise this year to 2.72 million tonnes, up 7.08 per cent year on year.

South Africa’s alumina import cost had also been posting a steady growth year on year, even in 2018 when the import amount had dropped from the previous year, found the data. In 2016, the estimated import cost was at US$1 billion, followed by US$13 billion in 2017. Rising further in 2018, South Africa’s alumina import cost pegged at US$16 billion. This year, the cost is estimated to come in at US$18 billion, up 12.5 per cent from 2018.

Australia is estimated to be the leading exporter of alumina to South Africa amounting 2.7 million tonnes in 2019, at the value of US$18 billion.