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30 MAY 2017 AL CIRCLE

UAE focuses on value added products; export of aluminium bar, rod & profile on downtrend

EDITED BY : BEETHIKA BISWAS 2MINS READ

Gulf region is the fasted growing aluminium producer and exporter in Asia after China. The volume of aluminium production in the GCC countries stood at 5.2 million tonnes in 2015, accounting for around 10 per cent of total global output of 58 million tonnes. After oil and natural gas, now aluminium is one of the key economic drivers for the Gulf region. United Arab Emirates is the top aluminium producer in GCC also the global leader in export of aluminium alloys. The country has doubled its export capabilities in the last 5 years. The country has also been focusing on value added products and is a major producer of bar rod and profile. 

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Aluminium rod and bar is produced by several different processes namely extrusion, rolling and coiling, or drawn directly from molten aluminium. Profiles are shapes that are produced through extrusion process. 

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In 2015, UAE exported 73,145 tons of aluminium bar, rod and profile globally. The total value of aluminium export was USD 207 million. In 2016, exports of aluminium bar, rod and profile dropped to 68,520 tons and the export value stood at USD 134 million.  Based on the trend in two years, UAE is forecasted to export about 71,096 tons of bar, rod and profile in 2017 and the revenue realization is estimated to be about USD 190 million.

Emirates Global Aluminium (EGA) is the major producer of aluminium alloys in UAE and there are other important producers like Taweelah Aluminium Extrusion Company LLC (TALEX), Aluminium Products Company (ALUPCO), Gulf Extrusion Co. (LLC), White Aluminium Extrusion (WAE), Emirates Extrusion Factory LLC, Garmco and Emirates Aluminium Rolling (Emiroll) that export aluminium bar, rod and profile globally. 

The top aluminium importers from UAE are USA, Germany and Japan. India, Malaysia, France and Japan also import substantial amount of aluminium alloys from UAE.

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The drop in total aluminium export is driven by growing domestic end user applications in recent years.  EGA is now set to start delivering molten aluminium to the downstream producers in Khalifa Industrial Zone Abu Dhabi (Kizad) via a dedicated hot metal channel from its Al Taweelah smelter.  This is a part of EGA’s project that was initiated as a means of cutting cost and in order to develop a competitive aluminium value added segment in UAE.  This would further cut down on export and expected to encourage more value added applications. 


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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