Industry Analysis & Industry Trends
Although Australia is the world's largest producer of bauxite and a substantial producer of alumina, it ranks about fifth in terms of global aluminium output. By far, the largest producer worldwide is China.
The Aluminium Smelting industry is expected to generate revenue of about $6.16 billion in 2012-13, compared with $11.5 billion in 2007-08 (a fall of 11.7% per year). The decline primarily reflects much lower aluminium prices over the period, although production volumes also eased. Revenue is expected to fall by 1.7% in 2012-13, as a modest rebound in US-dollar prices and a weaker Australian dollar fail to offset lower output. The industry, which produces about 0.1% of Australia's GDP, is expected to make a profit of about $775.3 million in 2012-13... purchase to read more
Industry Report - Industry Key Buyers Chapter
A handful of firms account for the bulk of Australia's aluminium output, but the production of aluminium castings is more dispersed. As a result, industry structure is characterised by a small number of large firms (the aluminium smelters) and large number of much smaller players (aluminium casters).
Although overall industry concentration is moderate, the two largest firms (Rio Tinto and Alcoa of Australia) directly generate about 42.4% of industry revenue. Moreover, the aluminium smelting facilities they operate, which are part owned by other firms, generate a combined 66.5% of industry revenue. Their importance reflects the large minimum efficient size for aluminium smelting plants, as well as the marketing synergies enjoyed by large producers... purchase to read more