Key UAE aluminum plant shuts down after Iran attack — Bloomberg
Photo: Emirates Global Aluminium's aluminum plant in the UAE (facebook.com)
Emirates Global Aluminium, the largest aluminum producer in the Middle East, has shut down its plant in Al Taweelah following an attack by Iran. Against this backdrop, aluminum prices have surged, and the market is now discussing new risks to global supplies, according to Bloomberg.
According to a source familiar with the situation, the plant on the outskirts of Abu Dhabi lost power as a result of the attack. Because of this, the smelting units, or electrolysis lines, had to be shut down in an uncontrolled manner.
According to the agency’s source, the metal solidified inside the smelting chambers, causing significant damage to production.
Following reports of the plant’s shutdown, aluminum futures on the London Metal Exchange rose. The price increased by 1.9%, while shares of competitors, including Alcoa Corp. and Century Aluminum Co., jumped by more than 5%.
Even before the direct blow to the industry, the situation in the region had already deteriorated due to the de facto closure of the Strait of Hormuz. This created a shortage of critical resources for major producers, and market participants now fear a wave of new cutbacks if the strait is not reopened in the near future.
Earlier, the White House stated that US President Donald Trump was interested in proposing that Arab countries cover part of the costs associated with the war against Iran. Against this backdrop, the war is increasingly affecting not only the security but also the economic infrastructure of the Persian Gulf countries.
Meanwhile, The Wall Street Journal reported that the United Arab Emirates was preparing to assist the US in forcibly reopening the Strait of Hormuz. If this happens, the Gulf nation could directly join the fighting for the first time in response to Iran’s attacks.
