How Would A 10% Increase In Bauxite Prices Impact Alcoa’s Cost Of Producing Alumina?

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Bauxite accounts for 26% of Alcoa’s production costs of alumina, as illustrated by the following table, making it one of the most significant raw materials for alumina production as far as production costs are concerned. Taking into account Alcoa’s refining cost structure, a 10% increase in bauxite prices will translate into an approximate 3% increase in Alcoa’s cost of producing alumina.

Refining Cost Structure

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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

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