$6.8bn
$XXX.Xm
3,245
57
$XXX.Xm
The Aluminium Smelting industry's performance has improved in recent years. Exports continue to take up over 85% of industry revenue as rising export prices place upwards pressure on industry revenue. Recovering demand from major domestic markets over recent years has further seen revenue grow as the low value-to-weight ratio of industry products typically makes high-volume imports uneconomical. Overall, industry revenue is expected to rise at an annualised 2.0% over the five years through 2023-24, to $6.78 billion. This includes an anticipated rise of 5.2% in the current year.Australia is the world's largest producer of major industry inputs like bauxite and is a substantial producer of alumina, giving producers consistent and secure supply of major inputs. However, the country ranks lower in global aluminium output, with China being the leading producer. Bauxite mining, alumina production and aluminium smelting industries are connected along the same supply chain. Industry operators use energy-intensive processes to smelt aluminium from alumina, which has been previously extracted from bauxite ore. Due to the energy-intensive nature of this process, profit has declined over recent years due to inflated energy costs arising from the Russia-Ukraine conflict. Aluminium prices have been volatile and increased significantly, limiting profit margin decline. Energy costs have been similarly volatile, with wholesale electricity prices increasing rapidly.The Aluminium Smelting industry is projected to grow over the next few years with industry revenue forecast to rise at an annualised 0.1% through 2028-29, to $6.8 billion. Australia's rising population is likely to place pressure on existing systems and expand demand for industry products and downstream manufacturing. These trends are projected to boost industry revenue, as new construction and manufacturing will raise demand for aluminium smelting and casting alike. Major players are further forecast to increasingly shift to green energy in order to cut down on emissions and energy costs. The industry is likely to face stronger competition from overseas manufacturers, although imports are likely to remain weak in comparison to exports.
Industry revenue has grown at a CAGR of 2.0 % over the past five years, to reach an estimated $6.8bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
Rio Tinto | 2,756.7 | |
Alcoa of Australia | 566.9 | |
Marubeni Aluminium | 339.4 |
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Industry revenue is measured across several distinct product and services lines, including Primary aluminium ingots and products, Aluminium castings and Recycled aluminium ingots and products. Primary aluminium ingots and products is the largest segment of the Aluminium Smelting in Australia.
A rise in exports sees demand for primary aluminium ingots and products rise
Industry firms primarily smelt alumina to produce aluminium, reprocess scrap aluminium and cast aluminium metal into basic shapes or to customer specifications. Companies also manufacture aluminium alloys from primary aluminium at the same facility.
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ANZSIC 2132 - Aluminium Smelting in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Decreased global supply has led to drastically growing aluminium prices. Lower global output of aluminium over recent years has caused prices to spike, which assisted Austral...
Learn about an industry's products and services, markets and trends in international trade.
The production of aluminium ingots and products continues to dominate product segmentation. Increasing exports in recent years has seen this segment’s share of revenue rise.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Access to downstream markets is a key determinant of business location. Access to markets like defence, mining, and exports gives businesses the advantage of lower transport ...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
High capital intensity has kept the steel and iron casting industry at low concentration. The Aluminium Smelting industry is characterised by moderate market share concentrat...
Learn about the performance of the top companies in the industry.
Rio Tinto’s aluminium operations are dependent on the transition to carbon neutral technology. Rio Tinto also plans to invest in green energy in relation to aluminium smeltin...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The Aluminium Smelting industry is characterised by low capital intensity. The industry is capital focused, with every dollar spent on labour, an estimated $0.70 is spent on ...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Changes in alumina prices have affected input costs. Recent upwards shifts in alumina prices have worked to increase the cost of inputs, pushing up the overall cost of purcha...
Including values and annual change:
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Key data sources in Australia include:
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The market size of the Aluminium Smelting industry in Australia is $6.8bn in 2024.
There are 57 businesses in the Aluminium Smelting industry in Australia, which has grown at a CAGR of 3.2 % between 2018 and 2023.
The market size of the Aluminium Smelting industry in Australia has been growing at a CAGR of 2.0 % between 2018 and 2023.
Over the next five years, the Aluminium Smelting industry in Australia is expected to grow.
The biggest companies operating in the Aluminium Smelting market in Australia are Rio Tinto, Alcoa of Australia and Marubeni Aluminium
Primary aluminium ingots and products and Recycled aluminium ingots and products are part of the Aluminium Smelting industry.
The company holding the most market share in Australia is Rio Tinto.
The level of competition is low and steady in the Aluminium Smelting industry in Australia.