On March 15, 2026, Aluminum Bahrain (Alba), one of the world’s largest single-site aluminum smelters, officially announced the suspension of three pot lines (Lines 1, 2 and 3), with a combined annual capacity of 308,000 metric tons, accounting for 19% of its total annual capacity of 1.623 million tons. The company has also launched equipment maintenance on the idled lines, with no clear timeline for resumption announced.
1. Core Reasons: Supply Chain Crisis Triggered by Strait of Hormuz Disruption
The production suspension is not caused by operational failures, but a critical supply chain crisis due to the ongoing closure of the Strait of Hormuz:
① Alba relies 100% on imported alumina, and stockpiles are only sufficient for approximately 30 days amid shipping disruptions;
② Finished aluminum products cannot be exported via the strait, leading to overstock and increased capital occupation;
③ The company adopted a targeted shutdown strategy, allocating limited raw materials to ensure stable operation of the more efficient Lines 4–6.
2. Global Impact: Tight Supply & Rising Prices Pressure Aluminum Melting & Casting Operations
① Combined with the full shutdown of Qatar’s Qatalum and maintenance at Mozal in Mozambique, approximately 1.22 million tons of global primary aluminum capacity has been taken offline. Middle Eastern aluminum supplies account for 23% of the world’s non-China capacity.
② LME aluminum prices rose 2.8% in mid-March. The Rotterdam P1020A aluminum billet premium surged to $490 per ton, up 28% from late February.
③ This has driven up raw material costs for global aluminum melting and casting enterprises, putting downstream industries including automotive, aerospace and packaging under dual pressure of supply shortages and rising costs.
3. Industry Insight: Supply Chain Resilience Becomes Core Competitiveness
The shutdown at Alba once again exposes the vulnerability of the global aluminum supply chain. For melting and casting businesses, it is critical to optimize raw material inventory and diversify procurement channels in the short term. In the long run, accelerating the layout of recycled aluminum, local capacity and low-carbon technologies will be essential to address both geopolitical risks and regulatory compliance challenges.