Aluminium exports from the United Arab Emirates have shown a year-on-year increase of 102 per cent in the first half of 2012, a report said.

The aluminium exports are expected to be robust in the future as well thereby becoming one of the key non-oil industry sector in the UAE, according to the Frost & Sullivan Perspective on UAE Aluminium Exports in 2012.

The Emirates Aluminium (Emal) smelter with 750,000 metric tonnes (MT) capacity was commissioned in 2011. Emal’s output is marketed by Dubai Aluminium (Dubal). This new facility has been a key contributor to the exports of aluminium, the report said.

According to Frost & Sullivan, the GCC has become a hub of aluminium industry and is well established in the global aluminium map as the source for quality and reliable supply of aluminium. The UAE smelters have leveraged this advantage for penetrating into the global aluminium market.

The UAE aluminium industry is largely dependent on exports as the country has underdeveloped downstream industry like one in Bahrain. Hence, bulk of the production is being exported as primary metal.

The North American and European regions are cutting down their aluminium smelter capacity due to the increasing cost of operations with regards to higher energy cost. Hence, the European customers are increasingly sourcing the aluminium from the GCC smelters which is further aiding the GCC aluminium exports, the report noted.

The UAE aluminium capacity is expanding further with Emal’s second phase expansion plans to raise its total annual output to 1.3 million MT. Frost & Sullivan expects this to drive the growth of exports in the near future. – TradeArabia News Service