Aluminium prices climbed after one of the world’s largest producers cut nearly a fifth of its output, heightening concerns over supply shortages as conflict in the Middle East disrupts shipping routes.
Bloomberg reported that Aluminium Bahrain BSC (Alba) said it has begun a phased shutdown of three production lines, representing about 19% of its total capacity, as the company moves to conserve raw materials amid shipping disruptions through the Strait of Hormuz.
The metal rose as much as 1.6% to US$3,494.50 per tonne in early trading on the London Metal Exchange before easing to around US$3,465.50 per tonne.
The Middle East accounts for roughly 9% of global aluminium production, and Alba’s output cuts add to recent supply disruptions that have raised concerns among manufacturers reliant on the metal. Prices on the London Metal Exchange surged to their highest level since 2022 late last week.
Like other regional smelters, state-owned Alba has faced challenges shipping finished metal and securing alumina feedstock as the key maritime route at Hormuz remains disrupted. The company suspended sales to customers earlier this month.
Production in the region has also been affected elsewhere, with Qatar reportedly halting some aluminium output due to natural gas shortages, further tightening supply in the global market.
