Emirates Global Aluminium expects aluminium prices to grow in line with the demand gains. It also projects its 2023 sales volume to remain steady even though the metal prices are on a downward trend. CEO Abdulnasser Bin Kalban said in an interview on Thursday, August 31, that EGA’s sales volume usually looms higher in the second half of a year. He also noted that the company now focuses on curbing expenses to bolster margins, as part of a preparation for when the owners decide to hold the IPO.
Aluminium prices reached record lows in the wake of the Ukraine-Russia conflict last year, further contributed by shifting trade flows and interrupted energy supply. Ever since, the prices on the London Metal Exchange declined, so much so that it is now trading about 6.5 per cent lower this year.
However, the crisis has not spoilt EGA’s confidence in the future aluminium market.
“We believe in the future of aluminium and we do believe that prices have some bright days ahead,” chief financial officer Zouhir Regragui said in the same interview.
According to EGA, the demand for primary and secondary aluminium will grow due to its heavy usage in cars, aeroplanes, and industrial equipment.
Kalban also said in the interview that EGA has aimed to invest in an alumina refinery in Guinea, where it also has a bauxite mine. But factors like expensive borrowing because of high interest rates and the need to source cleaner energy for the project are temporarily delaying the progress.
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