Aluminium Prices Hit 4-Year High, Could ANTM and ADMR Reap the Benefits?

Jakarta, CNBC Indonesia - Aluminium prices have soared towards their highest level in four years following Iran’s attack on an aluminium plant in Abu Dhabi. This is expected to bring benefits to a number of commodity issuers in Indonesia dealing with this metal, such as PT Aneka Tambang Tbk (ANTM) and PT Adaro Minerals Indonesia Tbk (ADMR).

The rise in aluminium prices is attributed to supply concerns after the Iranian attack targeted the Aluminium Bahrain (Alba) and Emirates Global Aluminium (EGA) aluminium plants in Abu Dhabi last Saturday (28/3/2026).

Iran’s Islamic Revolutionary Guard Corps (IRGC) confirmed that they fired a barrage of missiles and drones at the Aluminium Bahrain (Alba) and Emirates Global Aluminium (EGA) aluminium plants in Abu Dhabi.

Iran claimed that the attack was retaliation for previous US and Israeli actions targeting steel facilities and a university in Iran, and accused Gulf industries of ties to Western military interests.

The impact of the attack is significant for the operations of both aluminium giants.

In the UAE, EGA reported serious damage to its Al Taweelah site in the Abu Dhabi Khalifa Economic Zone, with six employees injured.

Meanwhile, Alba in Bahrain confirmed two employees suffered minor injuries and is currently conducting a thorough assessment of facility damage.

Although there were no fatalities, the attack severely disrupts the smelting process, which requires high technical stability, so operational recovery procedures are predicted to take considerable time.

Globally, the commodities market reacted immediately with sharp price volatility. Aluminium prices on international exchanges jumped up to 6% right after the attack news spread, adding to a total rise of around 15% since the beginning of the year.

On trading Monday (30/3/2026), aluminium prices rose again by around 5% to US$3,427.30 per tonne, inching closer to the four-year high.

Market analysts warn that supply disruptions from the Middle East, a vital contributor to global aluminium output, could push prices above US$4,000 per tonne.

These concerns are exacerbated by the highly unstable situation in the Strait of Hormuz, which hampers metal distribution and raw material shipments to the region.

This escalation also marks the broadening of physical conflict to civil and economic infrastructure beyond direct war zones.

Bahrain’s Defence Forces reported intercepting dozens of missiles and drones in the last 24 hours to protect national security.

On the other hand, the international community, including the United States (US) and Arab countries, has strongly condemned the attack for targeting crucial economic assets vital to global stability.

Currently, mediation efforts are underway through a meeting of foreign ministers in Islamabad to prevent a wider open war in the Gulf region.

ANTM-ADMR Could Reap Benefits

From the Indonesian stock exchange floor, two issuers are seen as potential beneficiaries from rising aluminium prices: PT Aneka Tambang Tbk (ANTM) and PT Adaro Minerals Indonesia Tbk (ADMR).

ANTM

ANTM plays a role in the upstream aluminium industry by managing bauxite ore production from its mining areas in West Kalimantan.

Currently, ANTM is also expanding into downstream integration through the development of the Smelter Grade Alumina Refinery (SGAR) project in Mempawah, operated jointly with Inalum via PT Borneo Alumina Indonesia. The first phase of the SGAR project has entered the operational stage and is targeted to produce around 1 million tonnes of alumina in 2026.

It does not stop there; in February 2026, the groundbreaking was held for the construction of the second phase of SGAR with an investment value of around Rp14 trillion. This project is planned to start operating in 2028 and will increase production capacity to 2 million tonnes per year.

On the other hand, ANTM is also conducting due diligence with Inalum regarding options for partial divestment or minority partnerships in two of its bauxite mines. This step aims to strengthen raw material supply integration for the SGAR project.

ADMR

Next is ADMR, part of the Boy Thohir conglomerate group, which is one of the issuers with the most direct exposure to the aluminium industry.

Through its subsidiary, PT Kalimantan Aluminium Industry (KAI), the company is developing one of the largest aluminium smelter facilities in the Indonesia Green Industrial Zone located in North Kalimantan.

In the initial development phase (phase one), this smelter is designed to have a production capacity of around 500,000 tonnes of aluminium ingots per year. One of the main advantages of this project is the use of renewable energy from a hydroelectric power plant (PLTA).

With this concept, the aluminium produced is categorised as “green aluminium” or low-emission aluminium, which has the potential for a premium selling price in the global market as attention to sustainability and ESG standards increases.

Operationally, this aluminium smelter has begun gradual operations since the end of 2025. However, significant contributions to the company’s financial performance are not expected to be immediately visible in the early production stage.

As the ramp-up or capacity increase process progresses, the impact of rising aluminium prices is estimated to start reflecting in ADMR’s financial reports from the second quarter to the fourth quarter of 2026.

Meanwhile, optimal production capacity of 500,000 tonnes per year is targeted to be achieved by the end of 2026 to early 2027.