The largest aluminium producer in the Persian Gulf has halted production following Iran’s attacks
Emirates Global Aluminium has suspended operations at its Al Tawila plant near Abu Dhabi after the facility came under attack from Iranian missiles and drones.
According to a Bloomberg source, the plant lost power, leading to an uncontrolled shutdown of production lines. As a result, the metal solidified in the production circuits, causing significant damage to the equipment.
Following reports of the production halt, aluminium prices on the London Metal Exchange rose by up to 2 per cent. Shares in other producers, including Alcoa Corp. and Century Aluminum Co., rose by more than 7 per cent.
Aluminium futures also rose in the wake of the attacks. Bahrain Aluminium confirmed that its facilities had also been hit. Both companies are among the world’s largest and were producing 1.6 million tonnes of aluminium each in 2025.
Analysts note that the halt in production at Emirates Global Aluminium, combined with capacity cuts at other plants in the region, could lead to a loss of around 3 million tonnes of annual output. This accounts for almost half of aluminium production in the Middle East.
The region accounts for around 9 per cent of global aluminium production. Companies in the region supply products to manufacturers in Europe, Asia and the US.
The industry has already faced difficulties due to shipping restrictions in the Strait of Hormuz, through which key resources for production are transported. Analysts estimate that disruptions could lead to a loss of between 3 and 3.5 million tonnes of production in 2026.
Experts note that the Strait of Hormuz is critical for the supply of raw materials, particularly alumina, which is used in aluminium production.
Following the attacks, Emirates Global Aluminium began selling significant volumes of alumina.
Against the backdrop of events in the Middle East, most base metals came under pressure in March. At the same time, aluminium is showing growth.
At the close of trading on the London Metal Exchange, aluminium rose by 1.9 per cent to $3,531.50 per tonne. Copper rose by 0.8 per cent to $12,434.50 per tonne, whilst other industrial metals also closed higher.
