Global Trade
May 11, 2026
Iran war disruptions show importance of US smelters, Century says
Written by Stephanie Ritenbaugh
As aluminum supply from the Middle East has been displaced by the Iran war, Century Aluminum said it has been able to fill some of that gap with its Mt. Holly expansion in South Carolina.
The Chicago-based producer estimates about 2.5 million tons of production in the Gulf countries have been disrupted by either production curtailments due to raw material shortages arising from the closure of the Strait of Hormuz or direct attacks.
“The timing of our Mt. Holly restart could not be better in this regard, providing additional American metal units to the domestic market,” CEO Jesse Gary said on the company’s first-quarter earnings call.
Hot metal production began in mid-April at the smelter. Production is on track to reach full output by the end of June. The company said this will increase total US primary aluminum production by 10%.
Gary said the Middle East disruption has expanded Century’s expected 2026 global deficit to 1.4 million tons.
“Over the course of 2026, this supply deficit should lead to further destocking from global inventories, creating a healthy go-forward environment for Century in both the US and Europe,” he said.
Grundartangi
Century restarted a potline at its Grundartangi smelter in Iceland in April, several months after a September equipment failure forced a partial shutdown.
The company expects the facility to return to near full production by the end of July. Gary said the smelter will run on a slightly reduced amperage until replacement transformers are installed in the fourth quarter.
“In Europe, the restored tons we are bringing on in Iceland will supply additional metal units and especially value-added products into a rising European duty-paid premium environment that has now been exacerbated by the significant reduction in imports from the Middle East and Africa,” Gary said.
Oklahoma smelter project
Century said its Oklahoma smelter project with Emirates Global Aluminium is progressing, with a final investment decision and groundbreaking by the end of the year. EGA, the largest industrial company in the United Arab Emirates outside of the oil and gas sector, has a 60% stake in the project.
Asked whether the Iran war could change the scope of the project due to the impact on EGA, Century’s CEO said the partners’ conversations have not been affected.
“I think it’s fair to say both are full go,” Gary said. “We both remain very excited about the new project and are working hard to make it happen. So, without speaking for EGA, there really has been no change as far as I can tell in our interest in the project, and we’ve had full engagement, and I think both parties are very committed to make that project happen.”
Talks are also ongoing with the utility company, Public Service Company of Oklahoma.
“I think both sides are eager to bring those to a conclusion so that we can bring the substantial development to the state and all the jobs and all the economic impacts that will come from that,” Gary said.
Jamalco
Century said the Iran war’s impact on alumina shipments and costs has impacted its Jamalco alumina refinery in Jamaica. Smelter closures in the Middle East have temporarily decreased global demand for the feedstock and weighed on alumina prices.
“The plant has been experiencing some lower quality bauxite than expected from certain of its mining areas and is in the process of adjusting its mining plan accordingly,” Gary said.
