Aluminium production and exports across the GCC have come under pressure in recent weeks as disruption to shipping through the Strait of Hormuz, linked to escalating regional tensions, affects the movement of raw materials into the region and finished metal out to international markets. The route sits at the center of the Gulf’s aluminium system, linking imported alumina from Australia and West Africa with smelting capacity in the GCC, and connecting that output to customers in Europe and Asia. That arrangement has been efficient for years, but recent disruption has started to test it.
Market impact
Aluminium has traded above $3,500 per tonne in March, with premiums in Europe rising alongside it as buyers compete for material that can be delivered within tighter timeframes. Traders have withdrawn close to 100,000 tonnes from London Metal Exchange warehouses in recent weeks, while buyers in Europe have accepted higher premiums to secure near-term deliveries rather than wait for Gulf shipments to normalise.
Delivery windows are also being revisited as fixed schedules become harder to maintain under current routing conditions.
Operations and logistics
Within the GCC, producers are working within a system that depends on steady inflows of alumina and uninterrupted export channels. In recent weeks, cargoes have been delayed or rerouted, with adjustments made in sequence rather than all at once, often on a shipment-by-shipment basis.
Emirates Global Aluminium has redirected shipments through Oman, including Sohar, adding time but maintaining export continuity. Meanwhile, Aluminium Bahrain has reported a reduction in operating capacity of around 19 per cent, linked in part to delays in raw material deliveries, with output adjusted in line with when inputs arrive.
Shipping data shows vessels waiting longer at anchorage or diverting routes during periods of heightened tension, particularly around Hormuz entry points.
Aluminium Bahrain (Alba)
Aluminium Bahrain’s March 2026 Annual General Meeting reflects these conditions while also pointing to longer-term positioning. The company approved a BD76.5 million cash dividend, equivalent to $202.6 million, equating to Fils 54.06 per share, or 54.06 per cent of paid-up capital, and recorded retained earnings of BD142.1 million. Shareholders also endorsed the proposed acquisition of Aluminium Dunkerque Industries France, described by the Chairman as a “strategic inflection point”.
The AGM also confirmed board appointments linked to Bahrain Mumtalakat Holding Company and Ma’aden, alongside the transfer of retained earnings, reinforcing shareholder alignment as the company expands beyond its domestic base.
Dunkerque, with capacity of around 285,000 tonnes per year, provides a production base within the European market, reducing reliance on long-distance shipping and aligning supply with customers operating under tighter sourcing and emissions requirements, particularly in low-carbon aluminium markets.
Regional response
Across the GCC, responses reflect how each producer is positioned within the wider value chain. Emirates Global Aluminium relies on logistical flexibility to maintain exports. Ma’aden’s Ras Al Khair complex integrates mining, refining and smelting, reducing dependence on imported inputs while exports remain tied to regional shipping routes.
In Qatar, Qatalum has maintained production supported by stable gas supply, although export scheduling has become less predictable. Sohar Aluminium in Oman, with direct access to the Arabian Sea, is less exposed to Hormuz transit.
Trade flows
Trade flows are beginning to adjust in response. Vessel tracking indicates increased use of ports such as Sohar and Duqm, alongside selective rerouting towards Red Sea corridors where possible. These changes have extended transit times, in some cases several days, and introduced additional cost into shipments, particularly on routes between the Gulf and European ports.
Industry context
The GCC accounts for roughly 9 to 10 per cent of global primary aluminium production, placing regional disruption directly into global supply and pricing. At the same time, demand linked to electric vehicles, renewable energy and construction continues to expand, particularly in Europe, where sourcing requirements are becoming more defined.
Logistics, regulation and product specification are increasingly shaping how and where aluminium is sourced.
Supply chain exposure and outlook
The disruption has not halted production in the GCC, but it has made the system more dependent on timing and routing decisions that were previously routine. Producers continue to adjust operations in real time, while buyers place greater emphasis on delivery certainty.
The outcome will depend on how long current shipping constraints continue and whether alternative routing can be sustained at scale. For now, the focus is on maintaining deliveries under these conditions.
If your business relies on regional supply chains or operates across the GCC, now is the time to review your structure, logistics, and compliance approach. As conditions continue to evolve, having the right setup in place can make all the difference. Speak to our team to ensure your operations remain resilient and aligned with regional developments.
