1. Home
  2. Base Metals
  3. Aluminium
  4. The Trend of Aluminum Smelters’ Profitability

The Trend of Aluminum Smelters’ Profitability

1€

  • TRY: 50 ₺

In addition to alumina, the main raw material in aluminum production, energy and petroleum coke have considerable contributions in costs of aluminum production. Hence, any changes to prices of these constituents have had notable impacts in cost structure of aluminum production. While the costs of supplies were decreasing, China’s strict environmental policies in 2017, switched the trend and consequently caused a surge in aluminum production costs. However, this also increased aluminum prices, which made wider margins for smelters. Since rising trade tensions can impact the sale prices of aluminum along with increasing trend of alumina supply costs, tighter margins are expected for smelters in near future.

Category: .

Product Description

In addition to alumina, the main raw material in aluminum production, energy and petroleum coke have considerable contributions in costs of aluminum production. Hence, any changes to prices of these constituents have had notable impacts in cost structure of aluminum production. While the costs of supplies were decreasing, China’s strict environmental policies in 2017, switched the trend and consequently caused a surge in aluminum production costs. However, this also increased aluminum prices, which made wider margins for smelters. Since rising trade tensions can impact the sale prices of aluminum along with increasing trend of alumina supply costs, tighter margins are expected for smelters in near future.

Scope

  • Production of aluminum from alumina and its cost structure
  • Trend of the most important factors affecting production costs in recent years and the reasons of significant changes
  • Calculations of margins in recent years and profitability of smelters
  • Outlook of profitability trend of aluminum smelters in a short-term future

Additional Information

Industry

Primary Aluminium
Region

World
Report Type

Insight

Reasons to Buy

  • Identify the key factors on costs of production of aluminum
  • Recognize the reasons of changes to the costs factors
  • Study past trend of profitability of smelters
  • Evaluate the short-term future of profitability of smelters
  • Understand the costs structure for production of aluminum from alumina and its changes in recent years

Table of Contents

  • Abstract
  • Decreasing share of alumina in China imports, pressured alumina prices
  • Environmental inspections in China tightened many primary materials
  • Profitability of aluminum smelters reached the top in 2017
  • Difficult period is waiting for smelters

List of Figures

  • Fig 1. The major constituents in production costs of aluminum, 2011&2017
  • Fig 2. Different resources for alumina supplies in importing market of China, 2001-17
  • Fig 3. Changes to prices of major constituents in cost structure of aluminum production, 2011-17
  • Fig 4. Production cost and sale price of aluminum together with percentage of capacities in profit. 2011-17

Related Reports