RIYADH: Bahrain’s aluminum producer Alba has shutdown 19 percent of its 1.6 million tonne-a-year production capacity to preserve business continuity amid ongoing disruptions affecting the Strait of Hormuz.
A statement from the company said the closures of Reduction Lines 1, 2 and 3 would enable a focus on the three remaining lines.
The shutdown reflects escalating tensions in the Middle East, disrupting energy supplies and industrial operations across the region. Aluminum smelting is highly energy-intensive and relies heavily on stable fuel and electricity supplies, meaning disruptions to natural gas shipments and logistics in the Gulf can quickly ripple through global metals markets.
“The GCC controls around 9 percent of global primary aluminum and effectively acts as the world’s swing supplier. Aluminum smelters rank among the most capital-intensive and slow-to-restart assets in all of industrial manufacturing: once capacity goes dark, it rarely returns swiftly,” Ilya Epikhin, principal at Arthur D. Little Middle East, said.
“Current disruptions don’t remain regional, they move global markets immediately. The market is already repricing risk: with force majeures declared, aluminum price has jumped — 10 percent in a week. Downstream sectors like automotive, packaging, and construction suddenly scramble for metal that was previously taken for granted. Manufacturers are now accelerating the shift toward secondary aluminum and locking in long‑term offtake agreements. The days of frictionless primary metal supply are likely over,” Epikhin added.
The newly released statement said that this targeted, line-specific action is designed to optimize the utilization of Alba’s existing raw materials inventory and prioritize operational stability across Reduction Lines 4, 5 and 6.
It added that by concentrating strategic raw materials’ inputs on the most sustainable operating configuration, Alba aims to maintain production resilience, manage working capital prudently, and develop alternatives to reduce exposure to near-term supply volatility.
The newly released statement said: “This targeted, line-specific action is designed to optimize the utilization of Alba’s existing raw materials inventory and prioritize operational stability across Reduction Lines 4, 5 and 6.”
It added: “By concentrating strategic raw materials’ inputs on the most sustainable operating configuration, Alba aims to maintain production resilience, manage working capital prudently, and develop alternatives to reduce exposure to near-term supply volatility.”
The statement said that as part of a planned and safe shutdown process, Alba will use the period to carry out structured maintenance and asset care across Reduction Lines 1, 2 and 3, including thorough cleaning and housekeeping, to preserve equipment integrity and prepare the facilities for a potential restart once conditions improve.
The suspension coincided with a surge in aluminum prices, which briefly hit their highest level in nearly four years before retreating as escalating conflict in the Middle East raised concerns over regional supply.
According to Al-Eqtisadiah, the metal rose as much as 2.8 percent to $3,544 a tonne in London, its highest level since March 2022, before falling about $100.
“Alba continues to monitor and respond to the situation and will provide updates to the market as appropriate. The company is also working closely with suppliers and customers to manage commitments and mitigate disruption,” the statement said.
The Gulf region accounts for roughly 9 percent of global primary aluminum production, and disruptions there can quickly affect the global metals market, Anoop Fernandes, vice president for research at SICO Bank, told Platts, part of S&P Global Energy, earlier this month.
Alba is not the only aluminum producer taking action because of the impact caused by the US-Israel war with Iran.
India’s Hindalco Industries has halted output of extruded aluminum, a value-added aluminum product, due to a gas shortage in the wake of supply disruptions in the Middle East, according to a company notice seen by Reuters.
The Aditya Birla Group-owned metals producer declared force majeure to all of its extruded aluminum customers on March 11, the notice showed.
Hindalco denied any halt to output for its extrusions business in a statement to Reuters, but the company said that it had issued a communication to extrusion customers after a force majeure declaration by certain gas suppliers and that it was a “routine business intimation regarding a potential supply disruption in a segment of the extrusions business.”
In 2025, the world produced 73.8 million tonnes of primary aluminum, of which non-Chinese supply accounted for 29.6 million tonnes, with just over 23 percent of that provided by the Middle East, according to the International Aluminum Institute.
