“The total Primary Aluminium Production by the GCC smelters in 2018 is 5.4 million tonnes, it is expected to increase to 5.7 million tonnes in 2019,”Mahmood Daylami, Secretary General, Gulf Aluminium Council

The Gulf Aluminium Council (GAC) is a coordinating body that represents, promotes and protects the interests of the aluminium industry within the Gulf. GAC members continually explore opportunities for synergy between their operations to improve the region’s international competitiveness. Mahmood Daylami is the Secretary General of GAC and has spent 33 years of his career in various fields of the aluminium industry. Prior to joining GAC, he held the position of Deputy Chief Executive Officer at Aluminium Bahrain (Alba). He is sharing his view on the Gulf aluminium sector in 2019 and ahead:

Q: What are the objectives and activities of Gulf Aluminium Council?

A: GAC is a coordinating body that represents, promotes and protects the interests of the aluminium industry within the Gulf. The council’s main objectives are to provide a forum to develop strategies for common issues and concerns facing the aluminium industry in the region, and to share best practices so as to improve the efficiency of the industry. GAC also work through committees consist of specialist from the member organisation with the objective of sharing best practices, reduce cost, improve productivity and efficiency. Example of such committees are Maintenance, Power, Procurement, IT, HR, Health, Safety & Environment.

Q: Aluminium smelters in Gulf have seen solid growth in recent years? What are the driving factors behind this growth?

A: The main driving factor is the world demand for Aluminium which is growing. This is encouraged by competitive price of energy as well as emphasis on efficiency improvement through modernisation, taking advantage of economy of scale.

Q: Companies in Gulf are developing more upstream opportunities in recent years. How do they plan to ensure raw material security as for alumina and bauxite are concerned?

A: As regards to Alumina and Bauxite the situation has changed to when aluminium industry first started in the GCC,  when the smelters in the region were totally relied on import of Alumina. Now, Ma’aden is fully integrated providing 100% of its Aluminium requirement from its own Bauxite mines in Kingdom of Saudi Arabia. EGA is almost completing its phase one of Alumina refinery in Abu Dhabi to produce 2 million tonnes annually which constitute 35 – 40 per cent of its requirement from Bauxite mine in Guinea that is owned by EGA. Sohar Aluminium is in partnership with Rio Tinto Alcan and Qatalum with Hydro who are integrated companies. Alba remains the only smelter without ownership of Bauxite or Alumina refinery which has long and short term supply contracts from a number of sources.

Q: Alba has commissioned 50% of its potline 6 project. What is your production outlook for the Gulf aluminium sector in 2019?

A: The total Primary Aluminium Production by the GCC smelters in 2018 is 5.4 million tonnes, it is expected to increase to 5.7 million tonnes in 2019 and to 6 million tonnes by end of 2020.

Q: What are the advancements that Gulf aluminium industry witnessed in 2018? What is your outlook for 2019?

A: There were a number of projects and developments in 2018, example, Alba energised line 6 and since have started more than 50% of the cells. EGA completed its modernisation projects at EGA– Jebel Ali power stations and the old pots, while progressed substantially on construction of the Alumina refinery. Meanwhile there were successful efficiency drive and cost reduction in all the smelters in the GCC. The downstream also have opened new market especially for auto industry.

Q: What are the value added strategies for the Gulf Aluminium producers in 2019?

A: GCC producers are well known for their sophisticated cast houses that are capable of producing variety of products with different alloys and sizes. Such cast houses are well equipped to produce premium products such as billets and foundry alloys to the world market as well as slabs. These products give GCC smelters an advantage over others.

Q: Do you see a global aluminium market deficit in 2019?

A: Based on various studies carried out by a number of firms, it looks that 2019 will show some deficit during the last quarter of the year. If the growth prospects continues as predicted in a positive direction and if China continues to keep some of the environmentally unfriendly smelter closed than the prospect of deficit in 2019 becomes e