Aluminium Bahrain (Alba) has commenced the shutdown of three of its aluminium smelting lines, representing 19% of its total production capacity, reported Reuters.
This decision comes as disruptions in the Strait of Hormuz persist, impacting the continuity of operations in the Middle East’s aluminium sector.
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The ongoing tensions in the Middle East have led to concerns about potential shortages, causing aluminium prices on the London Metal Exchange to rise to $3,546.50/t, a near four-year high.
Alba’s annual aluminium smelting capability stands at 1.62 million tonnes (mt).
The company announced that it has implemented a “controlled and safe shutdown” of reduction lines 1, 2 and 3.
Alba said in a statement: “This targeted, line-specific action is designed to optimise the utilisation of Alba’s existing raw materials inventory and prioritise operational stability across reduction lines 4, 5 and 6.”
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By GlobalDataThe company declared force majeure earlier this month due to its inability to transport metal to clients following the effective closure of the Strait of Hormuz.
This situation has similarly hindered other Middle Eastern smelters from receiving vessels with alumina, their crucial raw material.
Energy supply constraints add further pressure, with Qatar’s Qatalum reducing its operations to 60% capacity after a gas supply suspension forced a partial shutdown earlier this month.
In response to the disruptions, Alba plans to carry out asset care and maintenance on the closed lines, which includes extensive housekeeping and cleaning processes.
This preparatory work aims to facilitate a safe restart once conditions permit.
The company is also coordinating efforts with suppliers and customers to manage obligations and minimise disruption.
