GCC Aluminum Producers Maintain Strong Sales and Production Growth, Look Toward Asia

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Current conditions in global aluminum markets are not easy, but producers in Gulf Cooperation Council (GCC) countries are showing sales and market development that can sustain and even increase production levels.

The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.

Ma'aden Saudi Arabian Mining Company reports that it has sealed key contracts to supply more than 300,000 tons of aluminum to Asian customers over the course of 2014. This is in addition to the 50,000 tons in supply agreements made with Turkey and local customers. Asian buyers are in Japan, Korea, Taiwan and other Southeast Asian countries.

Ma'aden Marketing and Logistic Director Dhari Al-Shunaifi said the company has signed a number of key sales agreements with major partners in the region, which will back higher production levels in 2014 and beyond. The main Asian target markets are Japan and South Korea.

In 2014, Ma'aden's flagship aluminum smelter at Ras Al Khair will reach full production capacity of 740,000 tons annually of quality primary aluminum products. The smelter is part of the Ma'aden/Alcoa joint venture, which, when completed in late 2014, will be the world's largest vertically integrated aluminum project. As majority partner, Ma'aden will take 74.9% of the output.

Aluminum Bahrain (Alba) reached record sales of 919,722 tons in 2013. This was a 3.3% increase from 2012, ahead of the company's forecast.

Alba's production was up 2.5% to reach 912,700 tons, compared to 890,217 tons in 2012. In the fourth quarter of 2013, sale figures reached 237,534 tons, which was a 5.2% increase for the same period. Production figures increased by 2,912 tons to 229,916 tons.

Value-added product sales closed 2013 with an average of 66% of total shipments, compared with 65% in 2012. In the fourth quarter, value-added sales represented 66% of total shipments, compared with 64% in 2012.

"Alba continues to raise the bar and was able to deliver stretch targets amid tough market conditions," said Alba Chief Executive Tim Murray.

For related information, see April 12, 2013, article - Expanding GCC Aluminum Production Targets Investors for Downstream Developments.

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