Contracts for the fourth quarter and for 2019 will be subject to a “double digit” percentage price rise.
French alumina producer Alteo will raise prices for its entire portfolio of products from October 1 because of increasing production costs amid unrelenting demand for material from consuming markets.
The company confirmed to Industrial Minerals it will increase its prices «wherever possible» depending on contractual arrangements. This will include contracts for the fourth quarter of this year and for 2019.
Alteo cited a series of cost factors rising across the board, including bauxite, caustic soda, energy and freight, as well as volatility in smelter grade alumina (SGA) prices.
Energy costs alone have increased by around 50% against September last year, the company said, while caustic soda prices have risen 40% over the same time.
At the same time, demand from refractories producers has been consistently high throughout this year.
«Everyone is sold out at the moment and demand is higher than what we can offer,» an Alteo executive said. «Several customers are asking for more volumes than contractually arranged. Additional tonnages will be sold at a higher price.»
Industrial Minerals heard that the increase would be «double-digit» in percentage terms.
Alteo’s announcement follows warning from alumina suppliers earlier this summer on expected price rises for 2019 because of high consumer demand and insufficient output.
Unrelenting tightness
The calcined alumina market has been experiencing unrelenting tightness throughout 2018 because of a rebound in demand from the refractories sector as well as lower output in China.
Prices assessed by Industrial Minerals for 2018 contracts rose about 10% on average against 2017 contracts.
Contract prices for bulk unground calcined alumina, 98.5-99.5% Al2O3, stood at $730-780 per tonne ex-works United States/Europe for 2018 contracts, according to Industrial Minerals’ assessment late last month. This level has been in place since the start of the year.
The price of bulk ground calcined alumina, 98.5-99.5% Al2O3, was $830-930 per tonne ex-works US/Europe in 2018 contracts while the price of bulk calcined alumina, ground and unground, min. 99.5% Al2O3, min. 0.25% soda content was $830-930 per tonne ex-works US/Europe.
