The company has started the process of closing three production lines, which collectively represent 19% of its total annual production capacity of 1.6 million tons. The company stated that the suspension will aid in preserving raw material stockpiles and allow the plant to keep running in other areas while facing supply issues from maritime routes through the Strait of Hormuz.
Similar to other aluminum smelters in the Middle East, Alba has faced challenges in receiving metal shipments and supplies because of the near-complete halt in shipping through the Strait of Hormuz. According to Bloomberg, Alba had to pause its sales operations in early March. The agency points out that Alba's production cuts are the most recent development in the ongoing crisis affecting the global aluminum industry. Producers are experiencing significant rises in prices, and traders are expecting broad challenges in the supply chain due to disruptions.
Aluminum prices on the London Metal Exchange reached their highest point since 2022. Qatar had to stop some of its aluminum production because there was not enough natural gas available. Aluminum is the second most commonly used industrial metal after steel, but the market has faced significant supply issues in recent years, according to Bloomberg.
source: bloomberg.com
Similar to other aluminum smelters in the Middle East, Alba has faced challenges in receiving metal shipments and supplies because of the near-complete halt in shipping through the Strait of Hormuz. According to Bloomberg, Alba had to pause its sales operations in early March. The agency points out that Alba's production cuts are the most recent development in the ongoing crisis affecting the global aluminum industry. Producers are experiencing significant rises in prices, and traders are expecting broad challenges in the supply chain due to disruptions.
Aluminum prices on the London Metal Exchange reached their highest point since 2022. Qatar had to stop some of its aluminum production because there was not enough natural gas available. Aluminum is the second most commonly used industrial metal after steel, but the market has faced significant supply issues in recent years, according to Bloomberg.
source: bloomberg.com