Arab News | Saudi aluminum demand projected to reach 1.8m tonnes annually by 2030

JEDDAH: Saudi aluminum demand could reach up to 1.8 million tonnes annually by 2030, supported by major exhibitions and preparations for the 2034 FIFA World Cup, an official at Saudi Arabian Mining Co., also known as Maaden, estimated.

Speaking on the sidelines of the Fastmarkets International Aluminium Conference in Budapest, Ahmad Al-Alshaikh, executive vice president of Maaden’s Aluminum Business Unit, said the building of 15 new stadiums for the football tournament is contributing to demand, Reuters reported.

The news agency added that Al-Alshaikh said the US-Israeli war on Iran had only a limited impact on Maaden, adding that Gulf Cooperation Council countries worked together to mitigate its effects.

The executive said Saudi aluminum demand is expected to reach at least 1.6 million tonnes annually by 2030, compared with about 1 million tonnes currently, adding that consumption could potentially double within five to seven years.

Maaden produces about 780,000 tonnes of primary aluminum annually and about 1 million tonnes of cast metal, with about 85 percent of its production sold in the domestic market, according to Al-Alshaikh.

Maaden’s aluminum business

Maaden’s aluminum business posted its strongest quarterly financial performance on record in the second quarter, with revenue rising 49 percent year on year to $1.01 billion and earnings before interest, taxes, depreciation, and amortisation more than doubling to $411 million, according to its August results.

The company said the performance was supported by higher realized aluminum prices, which rose 51 percent year on year to $3,915 per tonne, while production volumes stood at 242,000 tonnes during the quarter.

Expanding the aluminum value chain

Aluminum is a key input for Saudi Arabia’s industrial diversification plans, supporting sectors including automotive, aerospace, renewable energy, and advanced manufacturing.

The Kingdom is expanding its aluminum industry and downstream capacity, with Maaden’s integrated complex in Ras Al-Khair serving as a key industrial asset.

In January, then-Industry Minister Bandar Alkhorayef said initial terms had been signed with Red Sea Aluminium Holdings for an integrated aluminum complex in Yanbu.