The Gulf Cooperation Council (GCC) is on track to surpass its 2022 primary aluminium production levels. As per the latest data from the International Aluminium Institute, the GCC’s primary aluminium production for the year-to-date (Y-T-D) in 2023 has reached an impressive 5.603 million metric tons. This figure marks a 0.90 percent increase from the 5.553 million metric tons recorded in the same period last year.
Despite a month-on-month decrease in November 2023, where production fell by 12,000 metric tons (or approximately 2.37 percent) to 506,000 metric tons, the overall trend remains positive. This decline was observed from October’s output of 518,000 metric tons, which itself was a 2.98 percent increase from September’s production of 503,000 metric tons. However, when comparing November 2023 with November 2022, there was a noticeable increase of 6,000 metric tons (or 1.2 percent) from 500,000 metric tons.
The daily average primary aluminium production in the GCC for November 2023 stood at 16,900 metric tons, which is 200 metric tons higher than in November of the previous year.
Looking ahead, it is highly likely that by the end of 2023, the GCC’s primary aluminium production will exceed the previous year’s total of 6.074 million metric tons. To achieve this, the region only needs to produce an additional 471,000 metric tons in December.
The GCC region is rapidly establishing itself as a significant hub for aluminium production on the global stage. This is evidenced by recent capacity expansions and the launch of new projects. For instance, Saudi Arabia announced its intention to double its investment in the aluminium industry, aspiring to become one of the world’s top ten aluminium producers. To date, Saudi Arabia has invested at least US$12 billion in various aluminium-related projects to enhance its production capabilities.
The Gulf countries are increasingly becoming a preferred destination for investments in the aluminium sector. This is highlighted by the opening of a new workshop by Fives in Bahrain in mid-2023, anticipated to contribute to the local economy and bolster the country’s industrial strategy.
With these developments, the GCC is expected to witness substantial growth in primary aluminium production in 2024, further solidifying its position in the global market.
