Hormuz disruption hits Gulf aluminium output, recovery may take months: IAI

Disruptions linked to instability around the Strait of Hormuz are impacting aluminium producers in the Gulf, with recovery timelines likely to vary widely and global supply chains facing prolonged normalization, the International Aluminium Institute (IAI) said on Friday.

IAI Secretary General Jonathan Grant said the Gulf region has become a critical hub for global aluminium supply, producing around 7 million tonnes in 2025 and playing an increasingly important role in supplying European markets.

 “In 2024, the region accounted for approximately 1.8 million tonnes of aluminium imports into Europe, representing around 15% of supply, and this share is likely to have increased further in 2025,” Grant said in a statement.

The growing reliance on Gulf aluminium has coincided with shifting trade flows following restrictions on Russian material, further elevating the region’s strategic importance.

Supply chain bottlenecks

The current disruption is closely tied to the heavy dependence of Gulf producers on the Strait of Hormuz, a critical chokepoint through which most raw material imports and finished aluminium exports pass.

Producers in the region rely on imported bauxite and alumina for refining and smelting, while primary aluminium shipments are largely exported through the strait. The temporary closure has left raw material supplies constrained and finished products stranded at production sites.

While some companies have explored alternative logistics routes, such as overland transport, volumes remain limited.

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Grant noted that even under normal conditions, restarting aluminium production is a complex process.

 “Even after an orderly shutdown, restarting a potline can take weeks, so supply chains may need months to normalise,” he said, adding that facilities sustaining physical damage could take significantly longer to recover.

Major producers affected

Three major Gulf producers have reported operational disruptions, according to the IAI.

Emirates Global Aluminium (EGA) said its Al Taweelah complex in Abu Dhabi suffered significant damage from missile and drone attacks in late March, forcing a full emergency shutdown. The site includes a smelter, alumina refinery, power plant, and recycling facilities.

The company said several employees were injured, though none of the injuries were life-threatening. Initial assessments suggest that restoring full production could take up to 12 months. The Al Taweelah smelter produced about 1.6 million tonnes of aluminium in 2025, while its refinery supplied nearly half of EGA’s alumina needs.

Meanwhile, Aluminium Bahrain (Alba) has declared force majeure due to logistical constraints following the Strait’s closure. The company has shut down several reduction lines to conserve raw materials while maintaining partial operations.

In Qatar, Qatalum initially moved toward a shutdown but has opted to continue operating at around 60% capacity after securing reduced gas supplies. The timeline for a return to full production remains uncertain.

Safety concerns and outlook

The IAI said its primary concern remains the safety and wellbeing of workers, noting that some employees were injured during the recent attacks.

The institute emphasized that the reopening of the Strait of Hormuz will be key to restoring normal supply flows, allowing producers to replenish raw materials and resume exports.

However, given the scale of disruptions and the complexity of restarting operations, the global aluminium market may face continued supply tightness in the months ahead.

Editing by Reiner Simanjuntak