Alba and Alcoa Renew Alumina Supply Agreement Amid Global Market Tightening

Alba Secures Long-Term Alumina Supply

Aluminium Bahrain (Alba), a leading aluminium producer in the Middle East, renewed its alumina supply agreement with Alcoa. The deal secures up to 16.5 million tonnes of smelter-grade alumina for the next decade. Starting in 2026, this agreement ensures Alba’s steady alumina supply, a vital raw material for aluminium production. This strategic move strengthens Alba’s position in the global aluminium market and boosts resilience.

Alba’s Strategic Partnership with Alcoa

This long-term deal guarantees Alba a reliable alumina source for the next 10 years. CEO Ali al-Baqali said the agreement will enhance Alba’s competitive edge. It ensures Alba can keep operating despite global supply uncertainties.

Global Alumina Market Disruptions

The global alumina market has faced disruptions due to supply chain issues. China, a key alumina producer, has reduced output. Alcoa suspended operations at its Kwinana refinery in Australia, producing 2.2 million tonnes of alumina annually. This suspension worsens the global alumina shortage, causing rising costs and delays for aluminium producers.

Bauxite Export Challenges from Guinea

Guinea, a major bauxite supplier, has paused bauxite exports. Bauxite is crucial for alumina production. Any disruption in supply could impact the global alumina market. Although the suspension hasn’t affected Emirates Global Aluminium’s Al Taweelah refinery in the UAE, future shortages and price volatility are a concern.

Alba’s Resilient Position in the Market

Alba’s agreement with Alcoa strengthens the company’s market position. Securing a steady alumina supply for the next decade allows Alba to navigate market volatility. This strategic partnership ensures stability amid global supply chain disruptions.