Aluminium prices ease after EGA targets full recovery of Al Taweelah smelter by Q1 2027

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Aluminium prices fell after Emirates Global Aluminium (EGA) reaffirmed its timeline to restore full production at the Al Taweelah smelter by the first quarter of 2027, easing market concerns over supply from the Gulf. 

The AL Taweelah smelter is currently operating at 18 per cent capacity. It was damaged on March 28, when strikes on the Khalifa Economic Zone in Abu Dhabi forced an emergency shutdown.

The update eased concerns over aluminium supply. Benchmark three-month aluminium on the London Metal Exchange (LME) fell 1.7 per cent to USD 3,308 per tonne after EGA confirmed the smelter remains on track to return to full production by the first quarter of 2027. 

The company said, “Basic utilities have been restored across the site, with natural gas and electricity availability projected to ramp up in line with the needs of the restart programme.” 

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Prices had risen for seven straight sessions, reaching a seven-week high of USD 3,384.5 per tonne on Tuesday, supported by concerns over Gulf supply and lower feedstock production at Norsk Hydro's plant in Brazil. 

Despite the disruption, EGA reported a net profit of AED 1.7 billion (USD 473 million) for the first half of 2026. The result includes a net impact of AED 725 million (USD 197 million) related to the incident. Revenue declined to AED 13.5 billion (USD 3.7 billion), compared with AED 15.1 billion (USD 4.1 billion) in the first half of 2025, mainly because of lower aluminium sales following the shutdown. Higher aluminium prices partly offset the decline.

EGA CEO Abdulnasser bin Kalban stated,“The first half of 2026 was the most challenging period in the long history of EGA.”  

Aluminium sales fell 32 per cent year-on-year after EGA temporarily suspended new outbound shipments from the UAE in March. The company has since established alternative export routes through ports outside the Strait of Hormuz and is gradually increasing shipment capacity.

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Around AED 1.5 billion (USD 408 million) is expected to be spent on restoring the Al Taweelah smelter, with most of the expenditure planned for 2026.

The company's aluminium recycling plant at the smelter is currently operating at 10 per cent capacity and is expected to reach full production by the end of 2026.

Chief Financial Officer Pal Kildemo said aluminium market fundamentals remain supportive, with the market currently in deficit, helping maintain margins.

Total debt rose to AED 18 billion (USD 5 billion). EGA also said it is moving ahead with the sale of its Al Taweelah power assets and expects to receive USD 1.7 billion after the deal is completed. The board approved an interim dividend of AED 1.7 billion (USD 463 million) for the first half of 2026, while the company continues to reduce discretionary spending to support cash flow.