Alba Shuts 19% of Capacity on Hormuz Shipping Woes

Aluminium Bahrain, the operator of the world's largest single-site aluminium smelter, announced on March 15 a controlled shutdown of three production lines, representing 19 percent of its annual capacity of 1.6 million metric tonnes. The move, prompted by ongoing shipping disruptions in the Strait of Hormuz, underscores the deepening impact of Middle East geopolitical tensions on global metal supplies.

The shutdown affects Reduction Lines 1, 2, and 3 at Alba's facility in Bahrain, allowing the company to conserve raw materials such as alumina and prioritize operations on the remaining lines. Alba stated that the action aims to optimize inventory use, maintain business continuity, and enable maintenance on the idled lines, including cleaning and equipment care, to prepare for a potential restart when conditions stabilize. The company emphasized that the process is being conducted safely to minimize risks to health, the environment, and operations.

These disruptions stem from heightened regional conflicts that began on February 28, involving military actions between the United States, Israel, and Iran. The Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the Gulf...