Iran Aluminum Expansions to Exacerbate Already Oversupplied Middle East Market

SHANGHAI, Jun. 1 (SMM) –Iran is seeking to expand aluminum production, and this move will only get already oversupplied Middle East even worse, SunSirs reported.

Iran officials said the country will produce aluminum on a large scale to meet demand in domestic market and the Middle East. The country has already invested $2.7 billion in aluminum industry so far.  

It was predicted that global aluminum demand will grow 5% in 2016 while production will rise just 2%, which will leave a supply deficit of 1.1 million tonnes. Aluminum consumption in the Middle East and North Africa will increase 5% in the first quarter this year, and Saudi Arabia, in particular, will see 12% growth.

One SOE in the United Arab Emirates increased aluminum output by 4% to 2.4 million tonnes last year. Another company, Aluminium Bahrain, planned to expand annual aluminum output by 540,000 tonnes to 1.5 million tonnes.

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