Sherwin Alumina filed for Chapter 11 bankruptcy protection in January this year and planned to continue operating its plant during the financial restructuring. Just 10 days before bankrupt Sherwin issued a WARN act notice that alerted employees to the possibility of closure by September, UC Rusal announced the sale of its 1.65Mt/a Alpart refinery in Jamaica to China’s JISCO. The expected restart of Alpart suggests excess ROW alumina supply and lower prices, posing added risks to Sherwin’s already difficult survival path.
Should Sherwin close in September and Alpart begin its ramp-up in Q2 2017, the SGA market would be solidly in deficit of about 554kt in Q4. The Sherwin output loss could be replaced tonne-for-tonne by a restarted Alpart operation. However, a two-year supply gap is likely, thanks to the timing between the two events and risk factors associated with any planned restart.
This report includes 1 file(s)
Market impact of Sherwin closure and Alpart restart PDF - 323.31 KB 7 Pages, 2 Tables, 3 Figures
This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.
For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.
Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.
We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...
Insight | Aug 2016
Market impact of Sherwin closure and Alpart restart
Have questions? Just let us know how to contact you and we will respond to you as soon as possible.