Aluminium Bahrain Profits Surge as Prices Offset War-Linked Output Losses

Aluminium Bahrain

Aluminium Bahrain profits rose sharply in the first quarter as higher London Metal Exchange aluminium prices and stronger delivery premiums outweighed lower production and sales volumes. The company reported profit of 75.3mn Bahraini dinars, more than four times the level recorded a year earlier.

Aluminium Bahrain profits were supported by a 22% year-on-year increase in average LME three-month aluminium prices to $3,195/t. Stronger regional premiums also helped lift earnings during a period of tightening aluminium supply.

Aluminium Bahrain profits still fell by almost a third from the previous quarter because of production disruption and shipping constraints linked to the Iran war. The company’s output and deliveries both declined as the Strait of Hormuz disruption affected raw material and product flows.

The result shows how aluminium producers can benefit from higher prices during supply shocks, while still facing direct operational pressure when logistics and plant reliability are disrupted.

Hormuz Disruption Cuts Alba Output and Sales

Alba produced 339,734t of aluminium in the first quarter, down 14% from a year earlier. Sales fell by 17% to 312,563t over the same period.

The volume decline followed Alba’s decision on 16 March to shut three reduction lines totalling about 300,000 t/yr of capacity. That represented around 19% of the company’s total output capacity.

The shutdown was a response to supply constraints caused by shipping delays through the Strait of Hormuz. The waterway is critical for Gulf industrial supply chains, including alumina, carbon products, spare parts and aluminium exports.

Alba’s facilities were then damaged by a missile strike on 28 March, adding physical asset risk to the logistics disruption. This turned a regional shipping issue into a direct production and repair challenge.

Despite lower volumes, value-added products remained important. They accounted for 71% of Alba’s sales, unchanged from a year earlier.

That product mix matters because value-added aluminium typically carries better margins and stronger customer relationships than standard ingot. In a disrupted market, maintaining value-added sales helps protect earnings quality.

Dunkerque Deal Could Expand Alba’s European Footprint

Alba’s agreement to acquire Aluminium Dunkerque in France adds a strategic European dimension to its current operating challenges. The company announced the acquisition plan on 4 March and signed a share purchase agreement on 6 May.

The deal remains subject to regulatory approval. If completed, it would give Alba a major European aluminium production asset at a time when western buyers are prioritising supply security.

The acquisition could also diversify Alba’s geographic risk. Current disruption in the Gulf has shown the vulnerability of aluminium producers exposed to Middle East shipping routes and regional conflict.

A European asset would give Alba closer access to automotive, packaging, construction and industrial customers in the region. It could also support the company’s value-added product strategy.

However, the timing is complex. Alba must manage reduced output, damaged facilities and supply-chain disruption at home while pursuing a major overseas acquisition.

For the aluminium market, Alba’s first-quarter result reinforces the current contradiction. Prices and premiums are high because supply is tight, but the same disruption creating stronger pricing is also cutting physical production.

The key issue is how quickly Alba can stabilise operations and restore capacity. If Middle East disruption continues, Gulf aluminium supply could remain constrained, supporting premiums but limiting volumes available to customers.

The Metalnomist Commentary

Alba’s quarter shows that higher aluminium prices cannot fully offset operational exposure to war, shipping disruption and plant damage. The Dunkerque acquisition may become more strategically valuable if Gulf producers need geographic diversification to protect long-term customer supply.

Bahrain's Alba sets Al production record in 2025

Alba

Bahrain's Alba sets Al production record in 2025, even after a December fire event. Bahrain's Alba sets Al production record in 2025 by holding operations steady and protecting shipments. As a result, the update reinforces Alba’s position as a reliable Middle East primary aluminium supplier.

Bahrain's Alba sets Al production record in 2025 with output of 1.623mn tonnes. Production rose by just 0.05% from 2024, but it still set a new high. Meanwhile, Alba reported a second straight year with zero lost-time injuries.

What the record output signals for Middle East aluminium supply

Bahrain's Alba sets Al production record in 2025 while regional smelters prioritize stability over headline expansions. Alba now emphasizes potline efficiency, rebuilds, and operational upgrades. Therefore, the company aims to lift throughput within existing nameplate constraints.

The December incident tested that strategy under stress. A fire hit a power rectiformer supplying the production plant on 19 December. However, Alba said operations and shipments stayed unaffected.

Safety performance and asset integrity become competitive levers

Alba’s safety result strengthens customer confidence and internal productivity. Zero lost-time injuries for two consecutive years reduces disruption risk and supports smoother maintenance cycles. As a result, it also improves the credibility of “operational excellence” claims with industrial buyers.

The market still watched the fire closely. A European trader suggested around 50,000 tonnes from one potline was affected. However, the key takeaway is continuity of deliveries and rapid containment.

Alba’s next value driver will be execution on potline upgrades. Better current efficiency, stable power systems, and disciplined maintenance can protect margins in volatile premium cycles. Therefore, the company’s near-term edge may come from reliability, not new tonnes.

The Metalnomist Commentary

This is a performance story disguised as a flat growth story. However, smelters that deliver consistently will win long-term contracts. The next risk to watch is electrical infrastructure resilience during upgrade cycles.

Alba alumina refinery MoU signals Egypt upstream push

Alba alumina

Alba alumina refinery MoU positions Bahrain’s smelter for upstream resilience. The Alba alumina refinery MoU outlines a pathway to build an Egyptian refinery. The Alba alumina refinery MoU also targets offtake and potential equity participation to secure feedstock.

Why Alba wants upstream alumina in Egypt

Alba lacks captive alumina while peers have integrated assets. Therefore, alumina price swings hit margins directly. Egypt offers bauxite access via global suppliers and strong logistics to MENA smelters. A refinery in Egypt could diversify supply and reduce freight exposure. Meanwhile, offtake agreements would stabilize volumes and pricing structures.

What the MoU could include next

The MoU frames feasibility, permitting, and financing studies. It also points to long-term offtake agreements with Alba and possible equity stakes. Stakeholder due diligence will assess capex, energy costs, red-mud handling, and ESG compliance. As a result, the project could mirror regional models used by Ma’aden and EGA. Commercial success will hinge on energy tariffs and stable maritime routes.

The Metalnomist Commentary

Alba’s integration move is strategically overdue. If Egypt delivers competitive gas or power tariffs, a coastal refinery with firm offtake could narrow Alba’s cost gap to integrated Gulf rivals. Execution risk centers on permitting cadence, residue management, and multi-currency financing in a volatile rate environment.

Aluminium Dunkerque Acquisition Expands Alba’s Reach Into EU Aluminium Smelting

Aluminium Dunkerque

Aluminium Dunkerque acquisition plans will give Aluminium Bahrain a major foothold in European primary aluminium production. Alba has agreed to acquire the French smelter from US private equity firm American Industrial Partners, creating a more geographically diversified aluminium group.

Aluminium Dunkerque is the largest aluminium smelter in the EU, with capacity of around 300,000 t/yr. The facility gives Alba direct exposure to European customers, EU industrial policy, and the region’s growing demand for lower-carbon aluminium supply.

The Aluminium Dunkerque acquisition also reflects a broader reshaping of aluminium ownership in Europe. Smelters with stable power access, strong industrial customers, and low-carbon potential are becoming strategically valuable as Europe tries to preserve energy-intensive manufacturing.

Alba Targets Long-Term Industrial Strategy in France

Alba said the transaction would combine two aluminium producers with complementary regional footprints. The company plans to maintain an industrial strategy anchored in France, led locally, and focused on operational stability.

This is important because Aluminium Dunkerque has changed ownership several times in recent years. American Industrial Partners has owned the smelter since 2021, after foreclosing on shares linked to GFG Alliance’s financing default. The facility had previously been owned by GFG subsidiary Liberty France Industries.

Alba’s management emphasized continuity, employee support, and continued investment. That message is likely aimed at French stakeholders, including workers, customers, power suppliers, and policymakers concerned about the future of domestic industrial capacity.

Low-Carbon Aluminium Becomes a Strategic Asset

Aluminium Dunkerque acquisition plans could strengthen Alba’s position in low-carbon aluminium markets. European customers increasingly need aluminium with stronger emissions credentials for automotive, packaging, construction, electrical equipment, and energy transition applications.

Alba said it wants to expand low-carbon production capabilities at the French site. This aligns with France’s industrial and energy priorities, especially as Europe seeks to defend strategic manufacturing while reducing carbon emissions.

The possible involvement of Bpifrance also matters. Alba said it is willing to offer the French state-backed investment bank a shareholding position as part of the transaction. Such participation could help align the deal with national industrial policy and support long-term investment at the smelter.

The Metalnomist Commentary

The Alba deal shows that European smelting assets remain strategically attractive when they offer scale, customer access, and low-carbon potential. Aluminium Dunkerque is not just a capacity acquisition; it is a gateway into Europe’s industrial decarbonisation agenda.

Alba and Ma'aden End Merger Talks, Reshaping Middle Eastern Aluminum Landscape

Alba

Potential Merger of Aluminum Giants Collapses Despite Initial Enthusiasm

Aluminium Bahrain (Alba) and Saudi Arabia's Ma'aden have mutually agreed to terminate discussions regarding a potential merger. The two Middle Eastern aluminum giants had entered into a non-binding agreement in September to explore the possibility of combining their businesses. This agreement, initially set to expire at the end of 2024, was extended to the end of April 2025 but has now been unexpectedly discontinued.

Factors Leading to the End of Negotiations

The collapse of the merger talks comes as a surprise, especially after Ma'aden acquired a 20.62% stake in Alba from Saudi chemical manufacturer Sabic shortly after the initial agreement was announced. The proposed merger had envisioned a cross-listing of Alba on the Saudi Exchange and the issuance of new Alba shares to Ma'aden in exchange for the share capital of two of its subsidiaries, Ma'aden Aluminium and Ma'aden Bauxite and Alumina.

Despite the termination of merger discussions, Alba continues to demonstrate strong operational performance. The company recently announced a new production record of 1.622 million tonnes of aluminum in 2024, a slight increase from the previous year.

The reasons behind the termination of the merger talks remain unclear. However, this development will likely have significant implications for the Middle Eastern aluminum industry, potentially altering the competitive landscape and influencing future investment decisions in the region.

Alba and Daiki Partner on Aluminium Dross Recycling Venture in Bahrain

Aluminium Bahrain (Alba), one of the world's largest aluminium producers, has announced a strategic partnership with Japanese alloy producer Daiki Aluminium Industry to establish an aluminium dross processing business in Bahrain. The collaboration aims to enhance sustainability by reducing waste from Alba's smelting operations.

The two companies have signed an initial agreement to form a joint venture that will construct a state-of-the-art aluminium dross processing facility. This new plant will focus on recovering aluminium metal from the dross—an industrial byproduct of smelting—generated at Alba's operations. By recycling this material, the venture will not only reduce waste but also support Alba's and Bahrain's broader sustainability goals.

Alba's chief executive, Ali Al Baqali, emphasized the significance of the partnership, stating, "This joint venture will serve as a model for sustainable aluminium production, demonstrating the power of collaboration to drive positive change."

While the announcement marks a significant step forward for both companies, details regarding the timeline for the facility's construction and commissioning remain undisclosed. Additionally, the financial specifics of the project have not been provided.

The partnership between Alba and Daiki highlights a growing trend in the aluminium industry towards sustainable practices and efficient resource management. As global demand for aluminium continues to rise, initiatives like this are becoming increasingly important in minimizing the environmental impact of production processes.

Alba Achieves Record Profits and Output in 2024 on Rising Aluminium Prices

Alba

Fourth Quarter Profit Soars 58.5% as LME Prices and Premiums Strengthen

Value-Added Product Sales Boost Bottom Line Despite Operational Setback

Aluminium Bahrain (Alba) reported robust financial results for 2024, posting record fourth-quarter and full-year profits on the back of historic output and favorable market conditions. Alba’s net profit for Q4 2024 surged 58.5% year-on-year to 37.1 million Bahraini dinar ($98 million). For the full year, net profit reached BD184.5 million, marking a 56.4% increase compared to 2023.

Production Record Set Amid Industrial Challenge

Alba achieved a production record of 1.622 million tonnes of aluminium in 2024, despite a minor industrial fire in November affecting its reduction line 1. The strong output follows the optimization of reduction line 6, which reached its full capacity of 560,000 t/year in April 2023. Notably, Alba’s operational resilience enabled it to maintain growth even in the face of disruptions.

Market Forces Drive Revenue Growth

The company benefited from a 7% increase in average LME aluminium prices in 2024, and a 17% spike during the fourth quarter. Spot aluminium delivery premiums hit multi-year highs, reflecting tight supply and heightened geopolitical risks. Sales volumes edged up 1% to 1.61 million tonnes, while value-added products made up 72% of total sales, up from 68% in 2023—further enhancing profitability.

Alba’s strategic focus on capacity optimization and value-added products has strengthened its market position, allowing it to capitalize on price surges and changing global dynamics. This success story highlights the resilience and adaptability required to thrive in the modern aluminium industry.

Alba Reports Strong Profit Growth for Q4 and FY2024 on Higher Output and LME Prices

Aluminium Bahrain

Aluminium Bahrain Sets New Production Record and Boosts Value-Added Sales

Aluminium Bahrain (Alba) delivered strong financial results in both the fourth quarter and full year of 2024, supported by record aluminium production and higher London Metal Exchange (LME) prices.

Alba’s Q4 2024 profit rose 58.5% to BD37.1 million ($98 million) compared to the same period in 2023. Full-year profit climbed 56.4% to BD184.5 million, reflecting robust market conditions and operational stability.

Alba set a production record of 1.622 million tonnes in 2024, slightly up by 0.1% from the previous year. This came despite a minor fire in November at a power rectiformer supporting Reduction Line 1.

The output milestone follows the full optimisation of Reduction Line 6, which reached its 560,000 t/yr capacity in April 2023.

Value-Added Sales and Premiums Drive Earnings Momentum

Average LME aluminium prices were 7% higher year-on-year in 2024, with Q4 prices up 17%, helping to lift Alba’s top line. Meanwhile, spot aluminium delivery premiums surged to multi-year highs amid tight global supply and growing geopolitical risk.

Alba’s sales volumes rose by 1% to 1.61 million tonnes in 2024. 

Notably, value-added product (VAP) sales rose to 72% of total sales, compared to 68% in 2023, supporting stronger margins.

The company’s performance reflects a combination of operational excellence, strategic investments in capacity, and favorable pricing trends. As aluminium demand continues to rise globally, Alba is well positioned to capture premium market segments with its value-added offerings.

Alba-Ma’aden Merger Deadline Extended to April Amid Strategic Expansion

Ma'aden

The deadline for the much-anticipated merger between Aluminium Bahrain (Alba) and Saudi Arabian mining company Ma'aden has been pushed to 30 April of next year. This extension, announced on the Bahrain bourse, provides additional time for both parties to finalize the details of this strategic union in the Middle Eastern aluminium sector.

Strategic Developments and Share Acquisitions

Initially set for the end of this month, the merger's deadline extension follows a non-binding agreement made in September to explore the potential combination of these two prominent companies. Shortly after this agreement, Ma'aden announced the acquisition of a 20.62% stake in Alba previously owned by Saudi chemical manufacturer Sabic, signaling a significant step towards consolidating their resources and expertise.

Ma'aden CEO Bob Wilt emphasized that this acquisition aligns with Ma'aden’s growth ambitions, enhancing its status as a regional and global leader in the aluminium industry. The deal not only expands Ma'aden’s operational footprint but also reinforces its market position by integrating Alba’s established production and distribution networks.

Proposed Merger Structure and Market Impact

The discussions between Alba and Ma'aden have included several potential structures for the merger, such as a cross-listing of Alba on the Saudi Exchange and the issuance of new Alba shares to Ma'aden. In return, Ma'aden would contribute the entire share capital of its subsidiaries, Ma'aden Aluminium and Ma'aden Bauxite and Alumina, along with certain contractual rights.

This strategic alignment is expected to enhance the combined entity's capacity to innovate and compete on a global scale, particularly in the high-demand sectors of bauxite and alumina production. The extended deadline suggests a careful approach to merging operations that promise to reshape the dynamics of the Middle Eastern aluminium industry.

Alba Achieves Record Aluminium Production in 2024 Despite Setback

Aluminium Bahrain (Alba)

Aluminium Bahrain (Alba) has announced a new production record for 2024, achieving a total output of 1,622,000 tonnes of aluminium. This represents a 0.10% increase compared to the previous year, a remarkable feat considering a minor industrial fire at a power rectifier supplying its reduction line 1 in November.

Production Growth and Future Plans

The record production is attributed to the capacity optimization of Alba's reduction line 6, which was commissioned in late 2018 and reached its full capacity of 560,000 tonnes per year in April 2023.  This achievement underscores the company's commitment to operational efficiency and growth.

Looking ahead, Alba has shifted its focus from installing a seventh reduction line to replacing its existing lines 1, 2, and 3 with new production facilities. This strategic move suggests a focus on modernization and technological advancements to further enhance production capabilities and sustainability.

Potential Merger with Ma'aden

Alba and fellow Middle Eastern aluminium producer Ma'aden entered into a non-binding agreement in September to explore a potential merger. This agreement, initially set to expire at the end of 2024, has been extended to the end of April this year, indicating ongoing discussions and the potential for a significant consolidation within the Middle Eastern aluminium industry.  The potential combination of Alba and Ma'aden could create a major global player in the aluminium market.

Alba and Alcoa Renew Alumina Supply Agreement Amid Tightening Global Market

Aluminium Bahrain(Alba)

Aluminium Bahrain (Alba), a leading aluminium producer in the Middle East, has renewed its alumina supply agreement with the U.S.-based integrated aluminium company Alcoa. This new, extended agreement will secure up to 16.5 million tonnes of smelter-grade alumina over the next decade, beginning in 2026. This strategic partnership not only strengthens Alba’s operational resilience by ensuring a steady alumina supply but also bolsters its competitive stance in the global aluminium market.

In a recent statement, Alba CEO Ali al-Baqali remarked, “This agreement not only guarantees a steady supply of alumina for our operations but also reinforces our position as a key player in the global aluminium market.”

The renewal of Alba’s alumina supply agreement comes at a critical time as the alumina market faces tightening supply. This is largely due to recent output disruptions in China, a significant alumina-producing nation, which has put pressure on the supply chain. Additionally, Alcoa recently announced plans to fully suspend production at its 2.2 million tonne-per-year Kwinana refinery in Australia by the end of this year, further impacting global supply.

Adding to the challenges, Guinea recently paused bauxite shipments from the subsidiary of UAE-based Emirates Global Aluminium. Although initially this is not expected to directly impact production at Al Taweelah, Emirates Global’s alumina refinery in the UAE, such disruptions in Guinea, a major bauxite source, signal potential long-term effects on the alumina and aluminium industries worldwide.

Ma’aden to Acquire Sabic’s Stake in Aluminium Bahrain

Ma’aden

Strategic Growth in the Aluminium Sector

Saudi Arabian mining giant Ma’aden has agreed to purchase the 20.62% stake in Aluminium Bahrain (Alba) held by Saudi chemical manufacturer Sabic. This acquisition strengthens Ma'aden's regional and international presence in the aluminium industry, a key part of its aggressive growth strategy.

Expanding Ownership and Regional Integration

Ma'aden is not new to acquisitions. Earlier this week, the company announced it would buy Alcoa's 25.1% stake in the Ma’aden joint venture, giving it full control over Ma’aden Bauxite and Alumina and Ma’aden Aluminium businesses. This move positions Ma'aden to consolidate its aluminium business under one umbrella.

In a related development, Ma'aden and Alba signed a non-binding agreement to explore a potential combination of the two companies. This merger could create a “vertically integrated global champion,” according to Alba.

Ma'aden CEO Bob Wilt emphasized that the acquisition of shares in Alba supports Ma’aden’s long-term goals. “As we continue in our growth journey, the acquisition of shares in a highly experienced, well-developed regional and global aluminium player firmly supports our ambitions,” Wilt said.

Alcoa Maintains 2024 Guidance as Third-Quarter Production and Revenue Climb

Alcoa

Alcoa Corporation, a leading U.S.-based integrated aluminum producer, upheld its 2024 production guidance for alumina and aluminum despite achieving increased quarterly production and revenue in Q3. The company continues to project aluminum production at 2.2-2.3 million metric tonnes (t) and alumina output at 9.8-10 million t, unchanged from prior estimates.

Third-Quarter Highlights

Aluminum production grew 5% year-over-year, reaching 559,000 t in Q3 2024 compared to 532,000 t in the same period last year. Aluminum shipments also rose slightly to 638,000 t from 630,000 t. Meanwhile, bauxite production declined to 9.4 million dry metric tonnes (dmt) from 10.7 million dmt a year ago. Alumina output decreased to 2.435 million t, down from 2.805 million t, with shipments falling to 2.052 million t.

Revenue and Market Dynamics

Alcoa’s Q3 revenue rose nearly 12% year-over-year to $2.9 billion, driven by higher alumina prices, which averaged $485/t compared to $354/t in Q3 2023. Aluminum prices also increased to $2,877/t, up from $2,647/t a year earlier. Third-party aluminum sales rose approximately 10% to $1.8 billion. Improved alumina pricing and lower raw material costs helped narrow segment losses to $11 million from $15 million in the same period last year.

The company posted $90 million in profits, a significant improvement from the $168 million loss reported in Q3 2023.

Strategic Developments

Alcoa raised its annual shipment forecast by 200,000 t to 12.9-13.1 million t, reflecting increased trading volumes. However, a wider spread between production and shipments emerged due to external sourcing of alumina amid the ongoing curtailment of the Kwinana refinery in Australia.

Alcoa is advancing a strategic partnership with IGNIS, a Spanish renewable energy investment firm. The agreement includes selling 25% of Alcoa's operations in Spain and a potential €175 million ($189 million) investment by Alcoa if required. The deal is contingent on government and employee support.

On 15 October, Alcoa signed a long-term supply agreement with Aluminum Bahrain (Alba) to deliver 1.5 million t of smelter-grade alumina over 10 years beginning in 2026, bolstering its position as a global alumina supplier.

Outlook

With strong alumina prices and strategic partnerships, Alcoa expects its alumina segment performance to improve by $30 million, driven by increased shipments and reduced production costs. As global aluminum demand remains steady, Alcoa’s ability to adapt through cost efficiency and partnerships positions it favorably for future growth.