Alumina is the most important raw material in the production of aluminum, accounting for the largest share (31%) in the smelting (the process of the production of aluminum from its raw materials) cost structure.
Alumina is the most important raw material in the production of aluminum, accounting for the largest share (31%) in the smelting (the process of the production of aluminum from its raw materials) cost structure.
Thus, fluctuations in the prices of alumina have the most significant impact on aluminum production costs. The smelting of aluminum is an energy-intensive process, with electric power accounting for around a quarter of the total costs.