The sharp fluctuations in the alumina market have led to higher costs and lower profits for aluminum producers.
Hansen said the turmoil in the alumina market has been a wake-up call for the aluminum industry. Commodity prices fluctuated sharply after hitting a record high in April.
Aluminium producers are under great pressure. Rio Tinto, from Rio de Janeiro, suffered heavy losses from alumina contracts. It is estimated that the contract cost of alumina for Rio Tinto (AllotTutoGroup) in the first half of the year is estimated at US $200m.
Chinalco delayed its original IPO plan. It is reported that 2/5 of alumina and aluminum smelters are currently unprofitable.