FY22 Overview & Safety Program Update
ALUMINA MARKET
EIII
SOUTH32
Significant increases to caustic soda and energy prices are
challenging margins at less efficient refineries
with ~35% of global supply currently loss-making
Alumina cost curve (CY21 and CY22)(a)
Increased Chinese demand expected to more than offset capacity
additions and ex-China smelter curtailments in the near term
Alumina prices
(US$/t)
600
500
(US$/t)
600
500
400
400
Spot price US$330/t (b) with ~35% of the supply loss-making
300
CY21 cost curve
300
200
100
China - domestic bauxite
Middle East & Africa
China imported bauxite
Americas
■Europe
Other
Source: CRU
Notes:
a.
b.
Illustrates business costs which represent cash costs net of premiums (normalised to FOB Australia price).
Spot price as of 19 August 2022.
Concurrent supply
disruptions inside
200
and outside of China
Russia-Ukraine
conflict
Return of Chinese buying
interest expected
100
Platts China Shanxi Ex-works (CFR Equivalent)
Platts CFR China
Aug-21
Nov-21
Source: Platts, South32 Analysis
Feb-22
May-22
Aug-22
SLIDE 29View entire presentation