Saudi Aluminium Demand Could Reach 1.8 Million Tonnes by 2030

TDT | Agencies

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Saudi Arabia's aluminium market is expected to see strong growth over the coming years, with demand potentially reaching 1.6 million to 1.8 million tonnes a year by 2030, according to Ahmad Al-Alshaikh, executive vice president of the Aluminium Business Unit at Saudi Arabian Mining Co. (Ma'aden).

Speaking on the sidelines of the Fastmarkets International Aluminium Conference in Budapest, Al-Alshaikh said current demand is around 1 million tonnes a year and could potentially double within the next five to seven years.

A major driver of this growth is expected to be Saudi Arabia's expanding construction and infrastructure activity, including preparations for the 2034 FIFA World Cup. The tournament is expected to involve the construction of 15 new stadiums, adding to demand for aluminium and other building materials.

Al-Alshaikh also said the recent US-Israeli war on Iran had a limited impact on Ma'aden's operations, noting that GCC countries worked together to reduce the effects of the conflict on the region.

Ma'aden's aluminium business

Ma'aden currently produces around 780,000 tonnes of primary aluminium and about 1 million tonnes of cast metal annually. Around 85 percent of its production is sold in the Saudi domestic market, highlighting the company's strong exposure to growing local demand.

The company's aluminium business also recorded its strongest quarterly financial performance on record in the second quarter. Revenue rose 49 percent year on year to $1.01 billion, while earnings before interest, taxes, depreciation and amortisation more than doubled to $411 million.

The results were supported by higher aluminium prices, with realised prices rising 31 percent year on year to $1,915 per tonne, while production reached 242,000 tonnes during the quarter.

Growing demand supports industrial expansion

Aluminium is increasingly important to Saudi Arabia's wider industrial development, with applications across construction, automotive manufacturing, aerospace, renewable energy and advanced manufacturing.

The Kingdom is also expanding its downstream aluminium industry. Ma'aden's integrated aluminium complex at Ras Al-Khair remains a major part of this industrial base, while new projects are being developed to increase processing and manufacturing capacity.

With major infrastructure projects, international events and preparations for the 2034 World Cup continuing, the expected rise in aluminium consumption could further strengthen demand for locally produced metal and support the development of Saudi Arabia's wider aluminium value chain.