Middle East's Largest Aluminum Producer: Abu Dhabi Smelter May Take a Year to Fully Recover Capacity

The global aluminum market is facing a significant supply shock. Emirates Global Aluminium (EGA), the Middle East's largest aluminum producer, stated on Friday that a week after being hit by Iranian attacks, its Abu Dhabi smelter may take as long as 12 months to fully recover production.

Affected by this, aluminum prices on the London Metal Exchange have risen cumulatively by more than 10% since the outbreak of the Iran conflict.

In a statement, EGA said that the Al Taweelah smelter in Abu Dhabi has entered an emergency shutdown after being heavily damaged by missiles and drones. The company has completed an initial damage assessment and is maintaining communication with customers who may be affected by shipment delays.

The shutdown impacts more than just EGA. Iran also attacked the smelting facilities of Aluminium Bahrain (Alba) on March 28, which stated it is currently assessing the damage.

The Middle East region accounts for approximately 9% of global aluminum production, and the successive damage to several major facilities has put further pressure on an already fragile global aluminum supply landscape.

Complex Repair Engineering, Full Recovery May Take Up to 12 Months

EGA noted in its statement that to restore smelter operations, damaged infrastructure must be repaired and every reduction cell must be restarted progressively. "Early indications show that the full recovery of primary aluminum production may take as long as 12 months."

Al Taweelah is one of the world's largest smelters, with a cast metal production of 1.6 million tonnes in 2025. EGA stated that the alumina refinery and metal recycling plant within the same park may resume partial production earlier after the final damage assessment is completed.

EGA CEO Abdulnasser Bin Kalban stated in the release: "We are communicating directly with customers whose deliveries may be affected by the situation at Al Taweelah."

Limited Inventory Buffer, Market Pressure Intensifies

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

Even before the attack on EGA facilities, shipping disruptions in the Strait of Hormuz had begun to affect the supply of raw materials to factories in the region, and the industry was already expecting the possibility of more production cuts.

Currently, supply concerns triggered by the Iran conflict are superimposed on a fragile inventory pattern, and aluminum prices have risen by more than 10% on the London Metal Exchange since the start of the conflict. The market remains highly vigilant about the uncertainty of the subsequent supply situation.