The Gulf’s 3.5 million tonnes of aluminum output is at risk because of the Iran war, and could trigger a global supply crisis according to analysts Wood Mackenzie.
Emirates Global Aluminium has halted operations in Abu Dhabi, after its Al Taweelah site sustained “significant damage” during an Iranian attack on March 28. That takes 1.6 million tonnes a year of production offline and it could take a year to repair. Aluminium Bahrain (Alba)’s facility was also hit by Iran on March 28 and its 1.6 million-tonne-a-year plant may now be working at just 30% of capacity. Qatar’s Qatalum is operating at around 60% capacity.
The Gulf accounts for around 23% of global, non-China aluminum production. Most Gulf output is sold overseas and the regional crisis is having a knock-on effect globally. Aluminum is in high demand from fast-growing industries such as electric vehicles, solar panels, wind turbines, and data centres. Prices are now at their highest level in four years.