Top Gulf aluminum maker declares force majeure on some contracts
Emirates Global Aluminium, the Middle East’s top producer of the metal, invoked force majeure clauses to suspend at least some deliveries after one of its smelters was put out of action by an Iranian attack.
The move comes as EGA halted operations at its Al Taweelah smelter after the site was struck by Iranian missiles and drones at the beginning of April amid the US-Israel war on Tehran. The force majeure on some contracts was outlined in documents seen by Bloomberg News.
The plant is among the world’s largest and produced 1.6 million tons of aluminum in 2025. EGA did not immediately respond to a request for comment outside of normal business hours in the UAE.
The Middle East as a whole produces about 9% of global supply of aluminum, with EGA and others playing a key role supplying manufacturers across Europe, Asia and the US. Even before the industry was directly targeted, Iran’s effective closure of the Strait of Hormuz, a vital shipping route, had already left the region’s major producers short of critical inputs. The sector is anticipating a cascading wave of production cuts unless the strait reopens quickly.
LME futures of the lightweight metal have surged since the Iran war broke out at the end of February. Prices climbed 1.6% to settle at $3,498.50 a ton on the London Metal Exchange on Friday, translating into a third weekly gain of 0.8%.
(By Yvonne Yue Li)
No comments:
Post a Comment