US EditionWorld's Top Aluminium Smelter Cuts Output Due to Shipping Chaos
Alba halts 19% of production to conserve raw materials amid Strait of Hormuz shipping disruptions, contributing to soaring aluminum prices and supply challenges.
- This month, Aluminium Bahrain BSC started a phased production shutdown at the world’s largest single-site aluminium smelter, deepening disruptions amid the war in the Middle East.
- Alba paused shipments and suspended sales earlier this month to preserve raw-material inventories as shipping standstill at the Strait of Hormuz disrupted metal and feedstock transit.
- Three production lines, about 19% of capacity, were taken offline, and London Metal Exchange prices rose to their highest since 2022.
- Manufacturers face spiking prices and traders expect widespread supply blockages, while the cutback further threatens supply to downstream industries and deepens industry turmoil.
- Alba's move follows suspensions by other regional producers and Hindalco Industries Ltd., while Qatar’s aluminium producers halted output due to gas shortages in recent years.
13 Articles
13 Articles
World's Top Aluminium Smelter Cuts Output Due to Shipping Chaos
The world's largest single-site aluminium smelter in the Middle East cut its output by about 20% on Sunday, marking yet another troubling development for the global economy. The disruption in the Strait of Hormuz is no longer just an energy story - it's now spreading into industrial metals. These second- and third-order effects could soon disrupt global supply chains and tighten aluminium availability, thus pressuring prices higher. Bloomberg r…
Iran to hold funeral for killed warship sailors, Aluminium Bahrain cuts output
The Strait of Hormuz, the narrow chokepoint through which nearly a third of the world’s seaborne oil passes, sat at the heart of the crisis on Sunday, March 15, as Iran kept it shut to American and allied vessels, the US energy secretary admitted the waterway was not safe and Bahrain’s aluminium giant began winding down production with no clear end in sight. The day brought fresh attacks across the region, with rockets near Baghdad airport, an I…
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