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| EGA Al Taweelah smelter |
Smelter Restart Progress and Supply Chain Resilience
EGA successfully restarted half of the reduction cells at its Al Taweelah smelter. Emirates Global Aluminium (EGA) announced the restart of 631 out of 1,262 reduction cells following an uncontrolled shutdown. Consequently, this milestone strengthens expectations of a robust recovery in Middle Eastern primary aluminium production by 2027. However, the company faces ongoing logistical hurdles as shipping through the Strait of Hormuz remains heavily disrupted. Therefore, EGA has adapted its logistics by resuming bauxite shipments from Guinea and routing exports through Khorfakkan Port on the UAE's east coast. Furthermore, these strategic adjustments allow the smelter to bypass regional choke points and steadily restore its operational capacity.
Market Impact and Global Aluminium Inventory Trends
Global aluminium markets respond dynamically to the progressive recovery of Middle Eastern output. LME aluminium inventories continue to decline while prices ease toward US$3,000 per metric ton in October. At the same time, additional supply from Indonesia and rising Chinese aluminium product exports alleviate tight market conditions. Project Blue forecasts that the global aluminium market will remain tightly balanced through 2027 as regional smelters resume full operations. Nevertheless, the pace of production restarts at major regional peers like Alba and Qatalum, alongside persistent maritime risks, remains a critical factor for market analysts.
ScrapInsight Commentary
EGA’s strategic partial restart of the Al Taweelah smelter signals a pivotal turning point for Middle Eastern primary aluminium supply chains heading into 2027. However, prolonged logistical adaptations around the Strait of Hormuz and fluctuating raw material imports suggest that regional market tightness will persist. Therefore, industry traders and global consumers must monitor LME inventory levels and alternative shipping routes closely as global production gradually normalizes.
