MARKET STRUCTURE · COMPETITIVE · MIDDLE EAST
Alba shuts 19% of aluminum capacity
Change
Aluminium Bahrain (Alba) initiated a controlled shutdown of reduction lines 1, 2 and 3, representing 19% of its smelting capacity.
Why it matters
Alba has a total smelting capacity of 1.62 million tonnes per year. The company stopped reduction lines 1, 2 and 3 in a controlled and safe shutdown. The action is intended to optimize use of existing raw-material inventory and prioritize operational stability on reduction lines 4–6. Alba declared force majeure on March 4 after being unable to ship metal due to the effective closure of the Strait of Hormuz. Qatar's Qatalum began a shutdown on March 3 after suspension of its gas supply and is operating at 60% capacity.
Implications
- • Declared force majeure suspends contractual shipment obligations for affected deliveries.
- • Inbound vessel disruptions prevent receipt of alumina required for smelting operations.
- • Raw-material inventories will be reallocated to prioritize operation of remaining reduction lines.
- • Suspended gas supply has reduced Qatalum's operating capacity to 60%, lowering regional output.
Who is affected
- • Primary aluminum buyers and procurement teams
- • Smelter operations teams
- • Shipping and logistics operators for alumina and metal
- • Energy suppliers to smelters
Source
Topics
Business & Markets Supply Chain & Logistics Manufacturing Energy & Power Oil & Gas