EGA reroutes aluminium exports via Oman amid Gulf conflict

Emirates Global Aluminium is preparing to reroute its metal exports and raw material inflows through the port of Sohar in Oman as escalating regional tensions threaten the Strait of Hormuz. The move follows the expansion of the conflict involving Israel, the United States, and Iran, which has entered its third week and significantly disrupted traditional shipping lanes.

The geopolitical instability has driven aluminium prices to a four-year high of $3,546.50 per metric ton, a 12% increase since the onset of the hostilities. Global supply chains are particularly vulnerable as the Gulf region produces approximately seven million metric tons of aluminium annually, representing nearly 9% of the world's supply. Industry observers and participants, such as Daiki Aluminium Industry Co., Ltd., are tracking these developments as nearly 80% of regional production is destined for international markets in the West.

To bypass the Strait, logistics firms are increasingly utilizing ports like Sohar and Fujairah in the United Arab Emirates, subsequently moving cargo by truck to industrial centers. EGA, which produces 2.7 million metric tons of primary aluminium each year, intends to import alumina feedstock through Sohar and transport it to its smelters in Dubai and Abu Dhabi.

Simon Buerk, EGA’s senior vice president of corporate affairs, commented on the operational adjustments.

We are not going to give a running commentary on how we are managing the current situation, but will say that the points you gave include some inaccuracies.

The shift toward Omani infrastructure is also being considered by other major producers. Aluminium Bahrain, based in Bahrain, is reportedly exploring similar routes through Sohar or the port of Jeddah in Saudi Arabia. While drone activity was reported in the Sohar province recently, the port itself remains secure and has not suffered damage, maintaining its status as a critical alternative gateway for the region’s heavy industry.