How Important Is Alumina In The Production Of Aluminum?

-1.72%
Downside
33.21
Market
32.64
Trefis
AA: Alcoa logo
AA
Alcoa

Alumina is the most important raw material in the production of aluminum, accounting for the largest share (31%) in the smelting (the process of the production of aluminum from its raw materials) cost structure. Thus, fluctuations in the prices of alumina have the most significant impact on aluminum production costs. The smelting of aluminum is an energy-intensive process, with electric power accounting for around a quarter of the total costs.

AA Smelting Cost Structure

Have more questions about Alcoa? See the links below.

Relevant Articles
  1. What To Expect From Alcoa’s Q3 Results?
  2. What To Expect From Alcoa’s Q2 Results?
  3. What To Anticipate From Alcoa’s Q1 Results?
  4. What’s Next For Alcoa After Tough Q4 Results?
  5. Buy, Sell, or Hold Alcoa Stock As Aluminum Prices Remain Soft?
  6. Falling Aluminum Prices Will Weigh On Alcoa’s Q3 Results

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Alcoa

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology