Aluminium prices have reached their highest level since 2022 following Aluminium Bahrain BSC’s (Alba) announcement that it is suspending metal deliveries to certain customers due to force majeure clauses in its contracts, reported Bloomberg.
This suspension stems from a halt in shipments through the Strait of Hormuz, a critical maritime passage.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The ongoing conflict in Iran is causing upheaval in the global aluminium market, leading to increased prices and concerns about supply interruptions unless the flow through the Strait resumes quickly.
Aluminium prices rose by as much as 5.1% in London, the largest increase since November 2024.
Aluminium ranks as the second most prevalent industrial metal after steel, yet its supply chain has been vulnerable to disruptions over recent years, affecting the complex network of alumina refineries, aluminium smelters and bauxite mines.
These facilities produce highly specialised forms of aluminium crucial to manufacturers worldwide.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAs tensions in Iran escalate, traders and investors are assessing both short and long-term market impacts.
According to Alba, the current force majeure is tied solely to transit issues in the Strait of Hormuz, not any disruptions at its smelter facility.
The disruption has already caused significant disturbances for aluminium traders this week.
Each day of shipment delays adds complexity to consumer markets.
Manufacturers favour aluminium for its availability and cost-effectiveness compared to alternatives like copper.
However, even brief supply interruptions can result in substantial commercial difficulties for factories reliant on just-in-time purchasing.
Despite assurances from US President Donald Trump that the US Navy will escort commercial vessels through Hormuz, traders remain sceptical about a swift return to normal operations through this essential chokepoint.
The conflict has highlighted another critical vulnerability that may cause chaos across industries if Middle Eastern smelters face further shipping disruptions.
