The global aluminum market is facing a convergence of geopolitical issues and persistent energy constraints. The result is the rally to multi-year highs that prompted analysts and investors to revise their price targets.
The latest disruption was not unexpected. Bahrain’s Alba has initiated a partial shutdown of its operations amid ongoing shipping disruptions. According to Reuters, the company said it has begun a “controlled and safe shutdown” of about 19% of its total smelting capacity.
Alba, which operates the world’s largest single-site aluminum smelter with an annual capacity of 1.62 million metric tons, said the move was designed to safeguard operations while the shipping bottleneck persists.
“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,” the company said.
Since the shipping through the Strait of Hormuz has stopped, the smelter is unable to either import key inputs or export the material.
Alba added that the downtime would be used to conduct asset care and maintenance across the affected lines. Housekeeping, cleaning, and preparation work will ensure a safe restart once conditions stabilize.
Multi-Year Highs
These disruptions have helped push aluminum prices sharply higher. On the London Metal Exchange, aluminum surged over $3,540 per metric ton last week. It is …
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