Middle East's largest aluminum producer: Abu Dhabi smelter may take a year to fully restore capacity

Ask AI · How will low global aluminum inventories amplify the impact of this supply disruption?

The global aluminum market is facing a significant supply shock. Emirates Global Aluminium (EGA), the largest aluminum producer in the Middle East, announced on Friday that it may take up to 12 months for its Abu Dhabi smelter to fully resume production after being attacked by Iran a week ago.

As a result, aluminum prices on the London Metal Exchange have risen more than 10% since the outbreak of the Iran conflict.

EGA stated in a release that the Al Taweelah smelter in Abu Dhabi has entered emergency shutdown after being heavily damaged by missiles and drones. The company has completed an initial damage assessment and is communicating with customers who may be affected by cargo delays.

This shutdown affects not only EGA. Iran also attacked the aluminum smelting facility of Aluminium Bahrain (Alba) on March 28, which is currently assessing its losses.

Approximately 9% of global aluminum production comes from the Middle East, and multiple major facilities have been damaged, further pressuring the already fragile global aluminum supply landscape.

Complex repairs could take up to 12 months for full recovery

EGA stated that restoring the smelter’s operation requires repairing damaged infrastructure and gradually restarting each reduction cell. “Early signs indicate that full aluminum production recovery could take up to 12 months.”

Al Taweelah is one of the world’s largest smelters, with a casting metal output of 1.6 million tons in 2025. EGA said that the alumina refining plant and metal recycling plant within the same complex could resume partial production earlier after final damage assessments are completed.

EGA CEO Abdulnasser Bin Kalban said in a statement, “We are directly communicating with customers whose deliveries may be affected by the situation at Al Taweelah.”

Limited inventory buffers, market pressure intensifies

The impact of this supply disruption has been significantly amplified because global aluminum inventories were already low. According to Bloomberg, capacity restrictions in other regions had previously been depleting inventories, leaving little room in the market to absorb sudden shocks.

Even before the attack on EGA facilities, shipping disruptions in the Strait of Hormuz had begun affecting raw material supplies to regional factories, and industry players have been anticipating the possibility of further production cuts.

Currently, supply concerns triggered by the Iran conflict, combined with fragile inventory levels, have caused aluminum prices on the London Metal Exchange to rise over 10% since the conflict began. The market remains highly alert to uncertainties regarding future supply conditions.