Iranian Attacks Disable Middle East's Two Biggest Aluminum Smelters

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Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

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Summary

Shortages of natural gas supply had already reduced aluminum output, and strikes at two major suppliers to the U.S. will further reduce supplies.

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Light Metal Thunder

On March 28, two of the Middle East's largest aluminum smelters, accounting for about two-thirds of the region's output, reported sustaining major damage from Iranian attacks.

Emirates Global Aluminium (EGA) reported significant damage from Iranian attacks at its 1.4 million ton-per-year Al Taweelah site in Abu Dhabi. On the same day, Aluminium Bahrain BSC (Alba) reported attacks on its 1.65 million ton-per-year plant in Bahrain. In the latter attack, Alba reported two employees were injured.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can view the EGA and Alba smelter profiles.

On Wednesday, Bloomberg quoted unnamed sources saying that, as a result of the bombing, EGA was planning to put large amounts of raw material alumina on the open market.

EGA and Alba have issued no further statements.

Industrial Info Vice President Research Metals & Minerals Joe Govreau said, "Prior to the war, the Middle East had experienced several years of increased project activity in smelter capacity expansion and growth. The Al Taweelah smelter alone has about $850 million worth of active capital upgrades and additions, including a fourth potline addition. All of this will be delayed now due to increased security concerns. The extent of the delays will depend on how quickly the situation stabilizes."

Give It to Me Strait

These attacks significantly increase the supply risk for the world's second-most important metal (after steel), say experts. Smelting operations were already slowed by temporary issues such as reduced natural gas supply and blockage of the Strait of Hormuz. Alba was among the companies declaring force majeure at that time. For more on this, see March 6, 2026, article - Forces Majeures, Middle East Smelter Closures Boost Aluminum Prices.

Reopening the Strait of Hormuz would have begun to relieve these issues, but repairs on damaged smelters could take much longer.

What This Has Wrought

According to a Monday press release from the Arlington, Virginia-based Aluminum Association, Gulf Cooperation Council states (including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE)) accounted for 13% of U.S. wrought aluminum imports in 2025. That was a near record high, and up significantly from 2024 numbers.

The association said wrought aluminum is aluminum that has been semi-fabricated through a rolling, extrusion forging or other process.

"While markets remain supplied in the near term, continued instability could create longer-term challenges particularly for certain types of primary aluminum products," the association continued. "The closure of the Strait of Hormuz has made both shipping aluminum out and shipping input material (like alumina) into the region extremely difficult and recent direct attacks on aluminum facilities are of growing concern."

U.S. Dependence

The U.S. Geological Survey reported that the U.S. must import 60% of its aluminum to meet demand. In 2025, it produced just 660,000 tons of primary aluminum. That's less than half of what Alba alone produces. The UAE and Bahrain were the U.S.'s second-and fourth-largest providers, respectively, according to Trade Data Monitor.

International Price Boom

As the conflict and resulting supply-chain restrictions have raised global crude oil prices, the same is happening in the aluminum sector, according to industry analyst alcircle:

• Europe: The duty-paid aluminum premium for April delivery hit U.S. $594 per tonne this week, a four-year high.
• Japan: April premiums shot up 20% since March 27, hitting U.S. $300 per tonne, a nine-year high.
• U.S. Midwest: April premiums for physical delivery (at an added cost over London Metals Exchange prices for physical delivery) reached $2,469 per tonne on Monday, matching its previous all-time high.
• London Metal Exchange: Reached U.S. $3,585 per tonne on Tuesday, surpassing the previous high reached on March 4. The latter session, said alcircle, had already exceeded the previous record price set during COVID-19 in 2022.

By the Numbers

• 3.1 million tonnes: Total aluminum processing capacity of the two smelters that were attacked by Iran
• Second and Fourth: UAE and Bahrain's ranking among countries on whom the U.S. relies for importing aluminum

Key Takeaways

• Iran significantly damaged smelters owned by two of the U.S.'s top aluminum suppliers.
• This was an escalation over Iran's previous closing of the critical Strait of Hormuz, and caused aluminum prices to skyrocket on worldwide exchanges.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).