GCC Aluminium production set for rapid growth, says Frost & Sullivan
Source: Frost & Sullivan , Author: S Venkatesan
Posted: Wed July 4, 2012 10:53 am

INTERNATIONAL. According to Frost & Sullivan, the Aluminum production in the Gulf Cooperation Council (GCC) is expected to grow significantly in the short to medium term. The region is expected to contribute around 15% of the total global production of aluminium by 2015.

GCC has no clear advantage in terms of feed stock, as alumina is imported by all companies except Saudi Arabian Mining Company that has captive bauxite mines to supply feed stock Alumina. However, the cost of power and the availability of the same provide an edge to the region. 

Energy costs account for one-third of aluminum production costs, and therefore, aluminum producers gravitate towards areas with cheap supply of natural gas.

Although Middle East leads in natural gas availability, gas allocation for aluminium projects has  been difficult in the region. New GCC Aluminium smelters are now focusing on promoting value added down stream industries using liquid metal.

This is expected to provide price advantage to down stream products as traditionally other down stream use solid Aluminium ingot for production. Frost & Sullivan believes this is expected to further position GCC as the destination of choice for Aluminium Producers.

Note: Perspective by S Venkatesan, Director, Metals and Minerals Practice, Middle East, North Africa and South Asia, Frost & Sullivan.

Frost & Sullivan, a Growth Partnership Company, enables clients to accelerate growth and achieve bestin- class positions in growth, innovation, and leadership.

For more information, please visit www.frost.com.


 

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: May 18, 2017
UAE. 2020 Expo key to 'lukewarm' construction market in UAE with costs forecast to rise by 2% in 2017; Rest of the region including Qatar and Oman seeing construction slowdown and stable costs, reflecting oil prices.
date:Posted: May 16, 2017
INTERNATIONAL. Britain's Labour Party has announced that if elected it would introduce a 45% income tax rate on incomes over 80k pounds, and a 50% rate over 123k.
date:Posted: May 15, 2017
UAE. UAE, Saudi Arabia, Qatar, Kuwait and Oman's aviation infrastructure to help fuel travel and tourism sectors and accelerate economic growth; Around 46% of region's aviation projects are located in Saudi Arabia; More than two-thirds are being executed in the GCC.
dhgate