Summary of the alumina market this year: The global alumina market is in chaos this year, mainly due to the following major events
1) Norsk Hydro, one of the world's leading aluminum producers, in early March this year, a regulator in Brazil asked the company to cut its production capacity at its Alunorte alumina smelter in Brazil by half until it complies with an environment. Protection Act.
2) Rusal's smelting business plays a key role in the global aluminum supply chain. In April 2018, the United States announced sanctions against Rusal and its major shareholders. According to the company's annual report, in 2017, Rusal Alumina and primary aluminum production were 7.77 million tons and 3.7 million tons, respectively, accounting for 6.2% and 5.9% of global production, respectively. If the production capacity of RUSAL is overseas, it will be affected.
3) In August 2018, Alcoa's workers in Western Australia went on strike. The strike involved three alumina plants and two bauxite mines, involving alumina production capacity of 8.98 million tons. According to Alcoa's announcement, the company's alumina production fell by about 15,000 in August due to strikes.
This year, half of the capacity of the Alunorte aluminum smelter in Brazil has been shut down, which has seriously disrupted the market. With an annual production capacity of approximately 6 million tons, the company is the world's largest independent alumina refinery. Although there was news afterwards that the plant was approved for resumption of production.
Due to supply concerns, buyers in the global market have turned their eyes to China. BMO Capital Markets said: "In 2018, China will become the net exporter of alumina for the first time in recent years. With the increase in production capacity, this may still happen in 2019." In 2018, alumina prices were boosted by supply disturbances, and aluminum producers were also suffering from headaches. Take Rio Tinto as an example. The company said that changes in alumina prices would cost it about $300 million in an old contract for the supply of raw materials.