Middle East aluminium shortfall
Gulf smelter cuts have created a roughly 1.9 million‑tonne aluminium deficit — about 9% of global supply — driving up prices for casings, connectors and heat sinks and threatening sporadic availability for assemblies in the coming weeks. ( discoveryalert.com.au )
Aluminium Bahrain (Alba) began a phased shutdown of three production lines on March 15, removing roughly 19% of output at its 1.6 million‑tonne single‑site smelter. (bloomberg.com) Qatalum initiated a controlled shutdown on March 3 and, after gas‑supplier revisions, has been operating at about 60% capacity with the plant’s managed curtailment expected to run through the end of March. (hydro.com) Emirates Global Aluminium has moved to reroute exports and raw‑material shipments through Oman’s Sohar port as maritime traffic through the Strait of Hormuz remains disrupted, according to Reuters reporting on March 17. (usnews.com) Benchmark three‑month aluminium on the London Metal Exchange traded near its highest levels since March 2022, touching around $3,500 per tonne in early March, while industry sources reported almost 40% of LME aluminium inventories were earmarked or cancelled for delivery amid the disruption. (rte.ie) Downstream demand concentrations increase vulnerability: the electrical and electronics sector accounts for more than 4.8 million tonnes of aluminium extrusion demand globally, and market research values the global heat‑sink market at roughly $16.8–19.1 billion in 2026. (marketgrowthreports.com) U.S. primary producers such as Alcoa say they are receiving new enquiries from buyers seeking alternative supply, even as analysts at ING and research houses flagged scenarios where prolonged Gulf disruptions could push prices above $4,000 per tonne. (bloomberg.com)
