Room to grow: Expanding production capacity has aided industry revenue growth

Australia is the world's largest producer of bauxite and alumina, and the world's largest exporter of alumina. Alumina is made by applying the Bayer process to bauxite. Alumina can then be further refined into aluminium. The Alumina Production industry is highly concentrated, and has only three major players: Alcoa, Rio Tinto and South32. Each firm is vertically integrated, with upstream bauxite mining and downstream aluminium smelting operations.Revenue for the Alumina Production industry is expected to decline at an annualised 1.2% over the five years through 2019-20. Significant fluctuation in the global price of alumina over the past five years has affected industry revenue and more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • The industry is highly concentrated and has only three major players: Alcoa, Rio Tinto and South32
  • Capital intensity has increased over the past five years as firms have invested in infrastructure
  • Industry profitability is anticipated to improve marginally over the next five years
  • Industry Report - Industry Analysis Chapter

    The Alumina Production industry’s performance has been mixed over the past five years. Global demand for bauxite, alumina and aluminium, and domestic factors, such as the price of electricity, affect the industry’s performance. Fluctuating demand for these commodities, electricity cost increases and the fluctuating value of the Australian dollar have prompted significant revenue volatility over the past five years. The growth in production capacity of major alumina refineries has also affected revenue. Industry revenue is expected to decline at an annualised 1.2% over the five years through 2019-20, to $8.1 billion. This trend includes a 17.7% revenue fall in 2019-20, due to a decline in the price of alumina...purchase to read more.

    Additional Insights for the Alumina Production Industry

    IBISWorld has determined the most important Key Success Factors for the Alumina Production are:

  • Availability of resource
  • Economies of scale
  • Downstream ownership links
  • IBISWorld analysts also discuss how external factors such as Demand from aluminium smelting and Electricity service price in the Alumina Production industry impact industry performance..

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    What's in this report

    What is the Alumina Production Industry?

    Industry firms refine bauxite into alumina (or aluminium oxide), a process that is also referred to as bauxite refining. Alumina is used to produce aluminium.

    Industry Products
  • Metallurgical-grade alumina
  • Chemical-grade alumina
  • Industry Activities
  • Bauxite refining
  • Smelter-grade alumina
  • Chemical-grade alumina
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from aluminium smelting
  • Electricity service price
  • US dollars per Australian dollar
  • World price of aluminum

  • Current Performance
  • International trends
  • Cost structure trends
  • Structural changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Global outlook
  • Domestic outlook
  • Supply chain outlook
  • Table: Alumina Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Alumina Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Aluminium Smelting

  • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Bauxite Mining
  • Electricity Transmission
  • Rock, Limestone and Clay Mining

  • Products & Services
  • Metallurgical-grade alumina
  • Chemical-grade alumina
  • Chart: Alumina Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Middle Eastern export markets
  • African export markets
  • Asian export markets
  • Domestic aluminium smelters
  • Other export markets
  • Chart: Major Market Segmentation for the Alumina Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Alumina Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Alumina Production Industry

  • Industry Globalization
    Alcoa of Australia Limited, Rio Tinto Plc - Rio Tinto Limited, South32 Limited,
  • Table: Alcoa of Australia Limited - financial performance
  • Table: Rio Tinto Plc - Rio Tinto Limited - financial performance
  • Table: South32 Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Alumina Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Alumina Production Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A semi-processed form of aluminium obtained when bauxite is refined, also referred to as aluminium oxide.
  • Aluminium
  • A non-ferrous, silvery-white metal that is soft and light, and which is produced from alumina.
  • Bauxite
  • The principle ore of aluminium, which consists mainly of aluminium oxide.
  • Bayer Process
  • A process that mixes ground-up bauxite with sodium hydroxide. After the mixture settles, it is filtered to recover the alumina, which is then crystallised, washed and dried.
  • Chemical-Grade Alumina
  • Aluminium oxide that has been heated to extreme temperatures to increase its purity and hardness.
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    Why buy this report?

    IBISWorld’s Alumina Production market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

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    This report on Alumina Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Alumina Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Alumina Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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