World alumina production for 2023 stood at 141.924 million tonnes, slightly down from 142.23 million tonnes the previous year, despite the bounce back in H2, according to the International Aluminium Institute.

 

This decline in annual output was mainly due to slow production in the first half of 2023, said the Institute in its survey. 

 

From January to June, the world alumina production stood below 12 million tonnes. However, July onwards, the output gained momentum and mostly stood above 12 million tonnes through H2 2023.

 

The robust alumina production in H2 was manifested in the volume of 72.699 million tonnes, up 5.02% from 69.225 million tonnes in H1. On a year-on-year calculation, the output in H2 registered a growth of 5.02% from 72.053 million tonnes.

 

For December, the global alumina production figures stood at 12.298 million tonnes, up 3.4% month-on-month from 11.894 million tonnes and 3.5% growth year-on-year from 11.878 million tonnes, it stated.

 

According to IAI, the world’s daily average production in December was 396,700 tonnes, up by only 200 tonnes from 396,500 tonnes in November but significantly higher by 3.5 per cent from 383,200 tonnes.

 

On the GCC market, the industry experts said it was on track to surpass its 2022 primary aluminium production levels.

 

As per the latest IAI data, the GCC’s primary aluminium production for the year-to-date (Y-T-D) in 2023 had reached an impressive 5.603 million metric tonnes. This figure marks a 0.90% increase from the previous year's figure of 5.553 million metric tonnes.

 

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.

 

According to IAI, the GCC region is rapidly establishing itself as a significant hub for aluminium production on the global stage with heavyweights Bahrain, Saudi Arabia, UAE, Oman and Qatar announcing capacity expansions as well as launch of new projects. 

 

Saudi Arabia had recently announced its plans 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 $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, said the IAI report.

 

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, it added.-TradeArabia News Service