Industry Analysis & Industry Trends
Australia is a substantial alumina producer, accounting for about 20% of world production each year. Australian alumina production is expected to total 19.9 million tonnes in 2014-15, with volatility over the past five years due to large price changes. Alumina output is expected to decline in 2014-15, as Rio Tinto's Gove refinery ceased output in June 2014 and domestic demand from aluminium smelters falls. Alumina output surged in 2012-13 as the full-year effect of large expansions at the Worsley (WA) and Yarwun (QLD) refineries drove volume growth.
Although some alumina is smelted into aluminium locally, the bulk of output is exported. These exports, amounting to an expected 17.2 million tonnes in 2014-15, are expected to generate revenue of $6.6 billion for the year... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry is highly concentrated, with only a few large firms accounting for the bulk of production. IBISWorld estimates that the three largest firms in the industry will account for 92.6% of industry revenue in 2014-15. Alcoa alone accounts for almost half of the industry's revenue, with Rio Tinto also making up for a large proportion of industry revenue. The industry concentration level has remained stable in the past five years due to the small number of firms operating in the industry and limited merger activity.
Australia is the largest alumina producing country worldwide and its refineries are cost competitive. High industry concentration reflects the large minimum efficient plant size required for alumina refineries to compete on the global stage... purchase to read more