Alba and Alcoa Renew Alumina Supply Agreement Amid Global Market Tightening

Alba Secures Long-Term Alumina Supply to Strengthen Global Position
Aluminium Bahrain (Alba), one of the leading aluminium producers in the Middle East, has renewed its alumina supply agreement with U.S.-based Alcoa, securing up to 16.5 million tonnes of smelter-grade alumina over the next decade. The renewed agreement, which is set to begin in 2026, will provide Alba with a stable supply of alumina, a key raw material in the production of aluminium. Alba’s CEO, Ali al-Baqali, stated that this agreement not only guarantees a steady alumina supply but also bolsters Alba’s competitive stance in the global aluminium market, positioning the company as a key player in an increasingly tight market. The long-term nature of the deal ensures that Alba can maintain its operational resilience even amid global supply uncertainties.

Tightening Global Alumina Market and Production Disruptions
The renewal of Alba’s alumina supply agreement comes at a time of significant disruption in the global alumina market. Supply chains have been increasingly strained due to output reductions in key alumina-producing regions. In particular, China, one of the world’s largest producers of alumina, has experienced production issues that have disrupted global supply. On top of that, Alcoa has announced the full suspension of operations at its Kwinana refinery in Australia, which produces 2.2 million tonnes of alumina per year. This move is expected to further exacerbate the global alumina shortage. As a result, aluminium producers are facing rising costs and production delays, with many looking to secure long-term contracts like Alba’s to ensure a steady and reliable supply of the critical material.

Bauxite Export Disruptions in Guinea Add Uncertainty to Supply Chain
Adding further pressure to the alumina supply chain, Guinea, one of the world’s largest sources of bauxite, has recently paused bauxite exports from its mines operated by Emirates Global Aluminium (EGA), a UAE-based company. While the suspension of shipments has not yet directly impacted production at Al Taweelah, Emirates Global’s alumina refinery in the UAE, it signals potential longer-term disruptions in the global alumina market. Guinea’s bauxite is critical to the production of alumina, and any prolonged disruption in supply could have a significant ripple effect across the global aluminium industry. As one of the largest suppliers of raw material for alumina production, any instability in Guinea’s bauxite exports raises concerns about future supply shortages and pricing volatility.

Strategic Partnership Offers Stability Amid Market Uncertainty
With the alumina market under pressure from multiple fronts, Alba’s renewal of its supply agreement with Alcoa is a strategic move to secure stability and mitigate the risks posed by ongoing global supply chain disruptions. By locking in a steady alumina supply for the next decade, Alba is positioning itself to weather the storms caused by market volatility and production disruptions. As the global aluminium industry navigates these challenges, long-term supply agreements like this one are becoming more crucial for securing a competitive edge and ensuring continuous production.