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The Trend of Alumina Refineries’ Profitability

Insight    August 29, 2018

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Bauxite, the main raw material for producing of alumina, has always the greatest portion in production costs of alumina, though its share was permanently lower than overall shares of energy and caustic soda. Since caustic soda production is energy intensive itself, the price of caustic soda consistently changes with energy prices, making energy the key factor in determination of production costs of alumina. Growing trend in energy prices as well as higher bauxites are increasing costs of production in alumina refineries, which can undoubtedly affect their margins.