Wood Mackenzie routinely reassesses the long run incentive price, which is the minimum price needed to make investment in new capacity viable based on a rate of return of 15%. The assessment takes into account changes in operating and capital costs, and the extent to which these have become embedded. We now estimate that the incentive price for alumina is US$370/t, while that of aluminium is $2380/t.
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Insight | Jun 2014
Alumina and aluminium prices must rise to prevent crunch
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