Alba and Alcoa Renew Alumina Supply Agreement Amid Tightening Global Market

Aluminium Bahrain(Alba)

Aluminium Bahrain (Alba), a leading aluminium producer in the Middle East, has renewed its alumina supply agreement with the U.S.-based integrated aluminium company Alcoa. This new, extended agreement will secure up to 16.5 million tonnes of smelter-grade alumina over the next decade, beginning in 2026. This strategic partnership not only strengthens Alba’s operational resilience by ensuring a steady alumina supply but also bolsters its competitive stance in the global aluminium market.

In a recent statement, Alba CEO Ali al-Baqali remarked, “This agreement not only guarantees a steady supply of alumina for our operations but also reinforces our position as a key player in the global aluminium market.”

The renewal of Alba’s alumina supply agreement comes at a critical time as the alumina market faces tightening supply. This is largely due to recent output disruptions in China, a significant alumina-producing nation, which has put pressure on the supply chain. Additionally, Alcoa recently announced plans to fully suspend production at its 2.2 million tonne-per-year Kwinana refinery in Australia by the end of this year, further impacting global supply.

Adding to the challenges, Guinea recently paused bauxite shipments from the subsidiary of UAE-based Emirates Global Aluminium. Although initially this is not expected to directly impact production at Al Taweelah, Emirates Global’s alumina refinery in the UAE, such disruptions in Guinea, a major bauxite source, signal potential long-term effects on the alumina and aluminium industries worldwide.