Bauxite Aluminum Commodities Project Stan and Ben

Presented From The Wu Brotherhood.

BAUXITE

For Ease of Research, many have been done on Aluminum instead of Bauxite. Aluminum has a direct relationship with Bauxite.

Information

• Producing Countries:– Australia (2/5 of world production)– Brazil, Guinea, Jamaica (important

producers)– 20 other countries (less producers)– USA 100 years ago used to be important but

is now negligible.

Goods (Uses of Bauxite in Percentage)• 85% used to produce alumina for refining

into aluminum metal.• 10% used to produced alumina which is

used in chemical, abrasive, and refractory products.

• 5% used to make abrasives, refractory materials, and aluminum compounds.

• The lightness, strength, and corrosion resistance are important considerations in it use. Metallic aluminum is used in transportation, and packaging.

Where Bauxite (Aluminum) is Traded

London Metal Exchange Commodity ExchangeNew York Mercantile ExchangeTokyo Commodity ExchangeShanghai Futures Exchange

Bauxite Price Trend

Current Price: 0.8938 USD/lb (Oct 31, 2008)

Conditions Responsible for Fluctuations in Price

Natural Disasters (Snowstorm in China)Shortage/Surplus (Supply)Bauxite ShortageLargely Related to ConstructionWar

Industry Group/ Trade Agreements 1901, first world-wide aluminum cartel was formed by the

five major companies, who at that time were producing 90% of the world's aluminum. Each Company could sell freely in their country in a

closed market Each company was allotted a guaranteed share of the

rest of the world market 1926, more formal cartel was signed 1931, cartel was formalized as a gigantic company, Alliance

Aluminium Compagnie of Switzerland, this included every major aluminum company Succesful during the 1930’s Aluminum Prices were kept stable through the worst of the

depression

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