Bahrain Starts Output Cuts at World’s Top Aluminum Smelter

Aluminium Bahrain BSC, which runs the world’s largest single-site smelter of the metal, started a phased production shutdown to preserve raw materials as the vital Strait of Hormuz remains at a near standstill.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Aluminium Bahrain BSC, which runs the world’s largest single-site smelter of the metal, started a phased production shutdown to preserve raw materials as the vital Strait of Hormuz remains at a near standstill.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The company, known as Alba, said it has initiated a shutdown of three production lines, which together represent 19% of its total output capacity of 1.6 million tons a year. The suspension will allow it to optimize its inventory of raw materials and keep other parts of the plant operating, it said.The cutback is the latest example of the disruptions in the Middle East that have sent shock waves through the global aluminum industry, with manufacturers facing a spike in prices and traders expecting widespread supply blockages. Prices on the London Metal Exchange have increased over 9% since the Iran war started late last month, rising to the highest level since 2022.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Along with other aluminum smelters in the Middle East, state-owned Alba has been facing disruptions to outbound shipments of metal and incoming supplies of alumina feedstock due to shipping constraints at Hormuz. Alba suspended sales to customers earlier this month, while Qatar’s state-owned energy producer was forced to halt aluminum production due to a shortage of natural gas.Aluminum is the most ubiquitous industrial metal after steel, but in recent years the market has been periodically rocked by supply shocks. It’s exposed fragilities in the complex network of bauxite mines, alumina refineries and aluminum smelters that supply to manufacturers around the world — often in highly specialized forms that can’t readily be replaced.(Updates with context from the third paragraph.)Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.