Industry Analysis & Industry Trends
Australia is a substantial producer of alumina, accounting for over 20% of world production. The major players in the Alumina Production industry are vertically integrated, with Alcoa, Rio Tinto and South32 all having interests in the upstream Bauxite Mining and downstream Aluminium Smelting industries. The Alumina Production industry is also highly concentrated, with the financial performance of the major players having a large influence upon overall industry revenue.
Local aluminium smelters have been subjected to challenging market conditions over the past five years. This has pressured industry firms as domestic demand has fallen. The Alumina Production industry derives the majority of its revenue from exports, which exposes the industry to volatile global market conditions... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Alumina Production industry is in the decline stage of its life cycle. Over the 10 years through to 2020-21, the industry's contribution to the economy (industry value added) is expected to decline at an annualised 3.7%. This is a poor performance compared with the overall growth of the economy, as real GDP is expected to increase at an annualised 2.6% over the same period.
Alumina is an undifferentiated product, and the Bayer process used in production is a well-established technique, having remained essentially unchanged for over a century. This makes innovation difficult, as technological change is slow. The small number of players dominating the industry stifle competition, with major players typically required to be vertically integrated to remain profitable... purchase to read more