Strait of Hormuz Disrupted, World's Largest Aluminum Plant Can't Hold On

The world’s largest single-site aluminum smelter has been forced to cut production due to disruptions in raw material supplies, revealing a supply chain crisis in the Middle East aluminum industry.

Aluminium Bahrain BSC (Alba) announced that it has begun phased shutdowns of three production lines, accounting for 19% of its total capacity. The direct cause is the actual interruption of shipping through the Strait of Hormuz, which has severely disrupted metal exports and alumina imports.

The company stated that these shutdowns are “controlled and safe operational measures” aimed at ensuring business continuity, optimizing the use of existing raw material inventories, and maintaining overall operational stability. Meanwhile, Trump has rejected the current Iran deal, tensions in the Middle East continue to escalate, and the timeline for supply chain recovery remains highly uncertain.

Shutdown of three production lines, capacity impacted

Alba operates the world’s largest single-site aluminum smelter with an annual capacity of 1.6 million tons. The shutdown involves Lines 1, 2, and 3, collectively representing 19% of total capacity. The company will continue to operate Lines 4, 5, and 6 normally, and will carry out structural maintenance and servicing on the paused lines to ensure readiness for restart.

Most of Alba’s equity is held by the Bahraini government. The company stated that this “targeted action on specific production lines” aims to optimize resource allocation under limited raw material inventories, prioritizing operational stability.

Hormuz Strait disruption affects overall Middle Eastern aluminum industry

The fundamental cause of the shutdown is the disruption of shipping through the Strait of Hormuz. This strait is a critical passage for metal exports and alumina imports in the Middle East. The actual disruption has led Alba and other Middle Eastern aluminum producers to face dual pressures: raw material shortages and delays in finished product shipments.

Alumina is a core raw material for aluminum production. When import channels are blocked, smelter inventories are depleted faster, forcing producers to choose between maintaining full capacity and safeguarding stock levels. Alba’s decision to reduce production proactively is a preventive measure to control cash flow and reduce short-term supply volatility.

Company seeking alternatives to cope with supply fluctuations

According to the company, Alba is actively developing alternative supply channels to reduce exposure to the current supply disruptions. This indicates that management anticipates the Hormuz Strait situation will not be quickly resolved in the short term, shifting crisis management from passive defense to proactive planning.

The company emphasizes that the main goals of this production reduction include: maintaining production resilience, prudently managing operating capital, and establishing systematic maintenance for the paused lines. These statements aim to signal to the market that the shutdown is reversible—once the supply chain is restored, the affected capacity can be restarted.

However, with Trump explicitly rejecting the current Iran deal and tensions in the Middle East persisting, Alba and other Middle Eastern aluminum producers still face significant operational pressures. Market expectations for regional aluminum supply remain cautious in the short term.