The price of alumina, the key raw material for aluminum, was hiking due to US President Trump’s sanctions against United Company RUSAL (RUSAL). Although the current aluminum price was still stable, the price of alumina has soared. Therefore, aluminum price was expected to rise in 2019 to reflect the cost.
The aluminum supply was tighter than before as aluminum manufacturers purchased alumina from RUSAL in the past, and now they could only find sources from other suppliers. RUSAL’s alumina production accounted for 6% of global total production.
In addition, the supply of aluminum also tightened by fewer alumina production from the world’s largest alumina plant in Brazil and strike in aluminum giant Alcoa's factory in Western Australia.
The data from CRU, a London-based commodities researcher, showed that the price of alumina soared by 60% by mid-September compared to the same period a year ago.
Soaring alumina price to cause higher aluminum price for 2019
2 Oct 2018 11:46 reported by Joy Liu
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