Middle East aluminum factory attacked, production halted, EGA sells alumina to cope with impact.

According to sources familiar with the matter, after an attack on an aluminum smelter in the outskirts of Abu Dhabi, Emirates Global Aluminium (EGA) has started seeking to sell a large amount of alumina - the key raw material needed for producing aluminum. Sources have stated that EGA has offered several batches of alumina spot prices this week, with plans to ship them between April and June. The company made this potential sale after stating that last Saturday's attack had caused "significant" damage to its Al Taweelah smelter, one of the largest aluminum smelters in the world. The company stated on Wednesday that they are unable to comment at this time. EGA has been assessing the damages on site, but aluminum prices have risen significantly since the weekend. Another large plant operated by Aluminium Bahrain was also attacked by Iran. These attacks have brought new risks to the supply in the region, exacerbating the pressure on smelters facing production cuts due to shortages of raw materials passing through the Hormuz Strait. Aluminum is the second most commonly used industrial metal after steel, but the industry has faced multiple disruptions in recent years in a complex global supply chain. The supply chain involves mining bauxite, refining it into alumina, and then smelting it into finished metal. While EGA can produce some alumina itself, they are typically a large buyer of the material, importing additional goods through the Hormuz Strait to supply the Al Taweelah smelter and another smelter in Dubai. As the market waits for details on the severity of the attack, some analysts have warned that if EGA confirms significant losses, it could indicate that the plant has experienced unplanned shutdowns, resulting in metal solidifying in its smelting circuit. In this case, repairs could be costly and time-consuming, with Natixis analysts estimating that the repair time could exceed a year.