Iranian airstrikes severely damage Middle East's largest aluminum plant, threatening 9% of global supply.

Emirates Global Aluminium (EGA), the Middle East's largest aluminum producer, issued a statement saying that its key production facility in the United Arab Emirates suffered "severe damage" in recent attacks by Iranian missiles and drones. Goldman Sachs predicts that rising commodity prices will put pressure on the global economy, given that the Middle East accounts for approximately 9% of global aluminum supply.According to the EGA statement, its facility in the Khalifa Economic Zone in Abu Dhabi was attacked, injuring several employees, none of whom are in life-threatening condition. The company is currently assessing the actual damage but did not disclose whether operations at the facility have been completely suspended.EGA points out that the Al Taweelah smelter will produce 1.6 million metric tons of cast aluminum by 2025, and the local alumina refinery will produce approximately 2.4 million metric tons by 2025. At the time of the Iraq War, a large amount of aluminum was already being transported by sea and stockpiled in overseas locations to maintain supply flexibility. Logistics strategies were adjusted, with routes diverted via the port of Sohar in Oman to mitigate the impact of shipping disruptions.The United Arab Emirates is a major source of global aluminum supply. This attack has further pressured the commodity industry in the Persian Gulf region. In addition, producers of various products in the Middle East, from energy to fertilizers, are currently facing export difficulties due to the suspension of shipping in the Strait of Hormuz.Aluminum prices were already on an upward trend before the Iraq War. With market expectations of tightening supply and declining inventories, prices may rise further. Since the Middle East accounts for approximately 9% of global aluminum supply, Goldman Sachs predicts that rising commodity prices will further pressure the global economy.