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 Key Buyers Chapter
The industry exhibits a high level of market share concentration. The top three firms, Alcoa, Rio Tinto, and South32, account for the majority of alumina production. The four largest players, including Rusal, are estimated to account for over 94% of industry revenue in 2015-16. The closure of Rio Tinto's Gove refinery in 2014 allowed Alcoa to increase its market share. In the current year, Alcoa is estimated to account for over half of the industry's revenue.
BHP's divestment of its alumina and other mining related assets in 2015 is the most recent major restructuring of an industry firm. However, as BHP's spin off South32 still operates the same assets, the restructuring had no effect on industry concentration... purchase to read more