GCC Aluminium Producers Eye Expanded Market Reach in US and Europe Following Sanctions on Russian Metals

Aluminium producers from the Gulf Cooperation Council (GCC) are set to increase their exports to the US and European markets, responding to new trading bans on Russian aluminium, copper, and nickel. The sanctions, enforced by the US and UK to limit Russia’s revenue from metal exports, are reshaping global trade flows, creating opportunities for GCC producers.

The GCC, contributing about 9% to the global aluminium output with 6.08 million tonnes in 2023, sees a substantial portion of this production coming from the UAE. Analysts and industry executives predict a significant rise in demand for GCC aluminium, especially from the UAE and Bahrain, which rank among the world’s top producers.

The sanctions include a US prohibition on the import of Russian metals produced after April 13 and restrictions on trading these metals on major global exchanges like the London Metal Exchange and the Chicago Mercantile Exchange. Before these sanctions, Russian aluminium exports had already decreased by 45% in 2023 compared to 2021, while exports from the UAE and Bahrain rose by 26% and 15% respectively.

Ducab Metals Business, based in the UAE, and Aluminium Bahrain are among the GCC companies anticipating increased demand. Ducab Metals, for instance, has responded by acquiring GIC Magnet, a Dubai-based manufacturer of copper and aluminium strips, aiming to strengthen its position in the global markets, particularly in the US and Europe. This acquisition is expected to boost Ducab Metals' annual revenue significantly.