Alcoa Corp., the largest US aluminum producer, agreed to an eight-year contract to supply Emirates Global Aluminium PJSC with as much as 15.6 million metric tons of alumina, the key ingredient needed to make the lightweight metal.
(Bloomberg) — Alcoa Corp., the largest US aluminum producer, agreed to an eight-year contract to supply Emirates Global Aluminium PJSC with as much as 15.6 million metric tons of alumina, the key ingredient needed to make the lightweight metal.
The agreement is the largest such supply contract signed between Alcoa and the United Arab Emirates-based company, the biggest aluminum producer in the Middle East, the companies said in a statement Monday. The deal, which starts in 2024, will represent a “significant” portion of Alcoa’s third-party alumina sales annually. Terms weren’t disclosed.
“Most of our alumina needs into the next decade are now secured by our own production and a long-term supplier in Alcoa that is aligned with our sustainability goals,” EGA’s Chief Executive Officer Abdulnasser Bin Kalban said in the statement.
If EGA were to take up the full amount during the life of the contract, it would equate to almost 2 tons of alumina a year. Alcoa shipped about 9.2 million tons of alumina for third-party consumption last year, according to data compiled by Bloomberg. Aluminum prices are down about 5% this year as macroeconomic uncertainty from China and the US to Europe dents demand for the metal used from automobiles and airplanes to appliances and window frames.
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