EGA Shutdown Sparks Aluminum Rally Amid Middle East Tensions

SEATTLE (Scrap Monster): Emirates Global Aluminium (EGA), the Middle East’s largest aluminum producer, has warned that it could take up to a year to fully restore operations at its Al Taweelah smelter in Abu Dhabi following a recent Iranian missile and drone attack.

The facility was forced into an emergency shutdown after sustaining significant infrastructure damage. EGA has completed an initial assessment and is currently coordinating with customers to manage potential shipment disruptions. The company noted that restoring production will require phased repairs and the gradual restart of reduction cells, with full primary aluminum output unlikely before 12 months.

The disruption is particularly significant given the Middle East contributes roughly 9% of global aluminum production. Supply concerns have intensified as existing constraints in other regions have already tightened inventories, leaving the global market vulnerable to shocks. Additionally, ongoing instability around the Strait of Hormuz has impacted the flow of critical raw materials, further pressuring regional output.

Aluminum prices have responded sharply, rising more than 10% on the London Metal Exchange since the onset of the conflict. Meanwhile, Iran also targeted Aluminium Bahrain (Alba), which is currently assessing damage to its smelting operations.

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