The United Arab Emirates’ state-owned aluminum producer, Emirates Global Aluminium (EGA), expects that price volatility for aluminum will persist throughout this year due to ongoing global trade tensions. The impact of U.S. tariffs on metal imports is significant, as President Donald Trump has imposed extensive tariffs, and the UAE stands as the second-largest supplier of aluminum to the U.S., following Canada.

According to Bloomberg, in 2024, aluminum prices on the London Metals Exchange increased by over 6%, closing the year with a 7% rise. This week, the regional premium for aluminum delivered to the U.S. reached a record high, indicating the strong demand influenced by geopolitical factors. The U.S. market is one of EGA’s largest, as the company acquired a Minnesota-based alloys producer prior to the tariffs and is eyeing additional acquisitions in the country.

EGA’s production rose last year, allowing the company to secure higher prices for its finished metal. They attributed this increase to geopolitical tensions, fluctuations in energy costs, and overall economic uncertainty. The company also announced that it is still negotiating with the Guinean government to resolve an ongoing dispute that has halted bauxite exports, which are crucial for aluminum production.

According to EGA, they experienced a 1.8 billion dirham ($490 million) impairment charge related to their Guinea Alumina Corp. venture due to the significant decrease in bauxite exports. EGA operates aluminum production facilities in both Abu Dhabi and Dubai. “We continue to seek a resolution with the government to resume bauxite mining and exports,” stated EGA Chief Executive Officer Abdulnasser Bin Kalban. He emphasized that the company will take all necessary steps to secure the raw materials needed for their alumina refining and smelting operations.

EGA reported a 19% increase in earnings before interest, tax, depreciation, and amortization, reaching 9.2 billion dirhams last year, reflecting the company’s resilience amid challenging market conditions.