This year will be a lousy one for Alumina. Key inputs such as gas and caustic soda have been on a tear while the alumina price has, for a while now, been well below historic averages. To top off the trifecta of bad news, joint venture partner Alcoa has confirmed that lower grades of mined bauxite will impact costs and volumes in key Australian refineries.
To sum up: costs have risen, prices are poor and volumes will fall. Yet Alumina remains on our buy list. It's worth explaining why.
Alumina – a white powder refined from