Aluminium producers in the Gulf are facing mounting supply challenges after shipping disruptions in the Strait of Hormuz and a production shutdown at a major regional smelter.
Aluminium Bahrain (Alba) has declared force majeure on some contracts after maritime activity in the Strait of Hormuz slowed significantly, according to Reuters.
The disruption follows escalating tensions in the Middle East after Iranian strikes in response to attacks by the United States and Israel affected vessels operating near the key shipping corridor between Iran and Oman.
A spokesperson for Alba said the company’s smelter operations remain unaffected, but exports have been halted because shipments cannot currently pass through the Strait.
“We are producing, but the metal is here in Alba because we are not able to ship,” the spokesperson told Reuters, adding that the declaration of force majeure is not related to any operational issues at the facility.
“Our force majeure is not due to any disruption or damage to the smelter facility,” the spokesperson said, noting that the company is working to identify alternative shipping solutions to reduce the impact on deliveries.
The Strait of Hormuz is one of the world’s most critical maritime chokepoints, carrying around one-fifth of global oil consumption and serving as a key export route for Gulf aluminium producers.
Industry estimates suggest that more than five million tonnes of aluminium are shipped through the passage each year by smelters in Bahrain, Qatar, Saudi Arabia and the United Arab Emirates.
At the same time, production has been disrupted at Qatalum, a joint venture involving Norsk Hydro. The company has begun a controlled shutdown of its aluminium production after a shortage of natural gas in Qatar linked to the regional conflict.
The shutdown process started on 3 March and is expected to be completed by the end of the month. The decision followed a notification from QatarEnergy that gas supplies to the smelter would be suspended.
Qatalum said the controlled shutdown aims to reduce health, environmental and safety risks associated with halting production while preparing the plant for a possible restart.
However, a full restart could take between six and 12 months, and it remains unclear when the facility might resume operations if the shutdown continues.
Hydro said it is assessing options to mitigate the impact and exploring alternative ways to meet contractual obligations. The company has also issued a force majeure notice to Qatalum customers following the production halt.
Alba, Qatalum halt aluminium production
