Yarwun, QAL's relief as alumina prices rise

GOOD news from overseas: aluminium prices have risen slightly and demand is expected to stay strong.

With Queensland Alumina Limited, Rio Tinto Yarwun and Boyne Smelters Limited relying on the price of aluminium to ensure their profitability, it is good news.

QAL Refinery in Gladstone. Photo Tom Huntley / The Observer
QAL Refinery in Gladstone. Photo Tom Huntley / The Observer Tom Huntley GLA080512REFI

The London Medal Exchange had the aluminium cash settlement price up 6.08% at the close of business on Monday to US$1641 a tonne.

The alumina price also increased marginally by 0.75% to $255 a tonne.

That is an increase of 28% since December 31, which would be good news for Queensland Alumina Limited and Rio Tinto Yarwun.

It still has a way to climb, with the alumina index for Australia at $324.14, 27% higher than what it was on July 1 last year, which is about where it sat two years ago.