Overview
- Iran hit two major Gulf aluminum producers, which pushed London Metal Exchange prices to the highest level in four years and stalled exports through the Strait of Hormuz.
- Aluminium Bahrain cut output by about 19% after declaring force majeure, Qatar’s Qatalum curtailed production due to energy issues, and facilities tied to Emirates Global Aluminium reported disruption.
- Toyota warned that roughly 70% of the aluminum it uses comes from the Middle East and trimmed production by about 40,000 vehicles over two months, while Nissan adjusted schedules.
- Morgan Stanley flagged aluminum as a high‑risk weak link across the supply chain, and Fastmarkets’ Andy Farida said prolonged shutdowns could pinch supplies for EVs, solar panels, wind parts, and power lines.
- The Middle East produces about 9% of global aluminum, and with Hormuz traffic constrained, companies are weighing costly rerouting or politically fraught imports from sanctioned Russian or Chinese suppliers.