Aluminium Smelting in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: October 2023
ANZSIC C2132Revenue
$6.8bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
3,245
Businesses
57
Wages
$XXX.Xm
Aluminium Smelting in Australia industry analysis
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.
Trends and Insights
- 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 Australian aluminium smelters.
- 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.
- 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 costs and higher demand.
- High capital intensity has kept the steel and iron casting industry at low concentration. The Aluminium Smelting industry is characterised by moderate market share concentration, with the four largest firms accounting for more than 45% of industry revenue.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.0 % over the past five years, to reach an estimated $6.8bn in 2023.
Trends and Insights
Global supply conditions have led to rising aluminium prices
- Global demand conditions have significantly shifted over the past few years.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Global economic activity will continue to be a major driver of industry performance
- Global aluminium prices are forecast to rise over the coming years, as supply remains restricted and key markets raise demand. However, aluminium prices are historically volatile.
Biggest companies in the Aluminium Smelting in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Rio Tinto | 2,756.7 | |
Alcoa of Australia | 566.9 | |
Marubeni Aluminium | 339.4 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
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.
Trends and Insights
A rise in exports sees demand for primary aluminium ingots and products rise
- Aluminium smelters mainly produce primary aluminium, which excludes alloys and recycled aluminium, and is an undifferentiated commodity.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Aluminium Door and Window Manufacturing in Australia
Complementors
- Bauxite Mining in Australia
- Alumina Production in Australia
- Aluminium Rolling, Drawing and Extruding in Australia
International industries
- Aluminum Manufacturing in the US
- Aluminum Manufacturing in Canada
- Aluminium Production in the UK
- Aluminum Smelting in China
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Primary aluminium ingots and products Recycled aluminium ingots and productsAluminium castingCompanies
Rio TintoAlcoa of AustraliaMarubeni AluminiumPurchase this report to view all 3 major companies in this industry.
Related Terms
ALUMINIUMPRIMARY ALUMINIUMPOTLINEALUMINABAUXITEINGOTIndustry Code
ANZSIC 2132 - Aluminium Smelting in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
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...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
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.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
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 ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
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.
Analyst insights
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...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
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...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Rio Tinto's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Alcoa of Australia's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Marubeni Aluminium's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Rio Tinto, and factors influencing its performance in the industry
- Description and key data for Alcoa of Australia, and factors influencing its performance in the industry
- Description and key data for Marubeni Aluminium, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
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 ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
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...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Aluminium Smelting industry in Australia in 2024?
The market size of the Aluminium Smelting industry in Australia is $6.8bn in 2024.
How many businesses are there in the Aluminium Smelting in Australia industry in 2023?
There are 57 businesses in the Aluminium Smelting industry in Australia, which has grown at a CAGR of 3.2 % between 2018 and 2023.
Has the Aluminium Smelting industry in Australia grown or declined over the past 5 years?
The market size of the Aluminium Smelting industry in Australia has been growing at a CAGR of 2.0 % between 2018 and 2023.
What is the forecast growth of the Aluminium Smelting industry in Australia over the next 5 years?
Over the next five years, the Aluminium Smelting industry in Australia is expected to grow.
What are the biggest companies in the Aluminium Smelting market in Australia?
The biggest companies operating in the Aluminium Smelting market in Australia are Rio Tinto, Alcoa of Australia and Marubeni Aluminium
What does the Aluminium Smelting in Australia include?
Primary aluminium ingots and products and Recycled aluminium ingots and products are part of the Aluminium Smelting industry.
Which companies have the highest market share in the Aluminium Smelting in Australia?
The company holding the most market share in Australia is Rio Tinto.
How competitive is the Aluminium Smelting industry in Australia?
The level of competition is low and steady in the Aluminium Smelting industry in Australia.
