London – Primary aluminum production in Gulf countries dropped by 6% in March. This was compared to February figures. The International Aluminum Institute released this data. The institute warned that the conflict in the Middle East could worsen. This could further impact production.
The institute’s data showed the average daily output in Gulf states. These countries account for about 9% of global aluminum smelting capacity. Production reached approximately 15,963 metric tons in March. This was down from 16,997 tons in February.
Jonathan Grant, the Institute’s Secretary-General, stated March’s final figures are incomplete. He expects actual production to be lower. Complete data will be released next May. He noted the current data does not include country-specific details.
The region’s aluminum industry has been affected. Several vital facilities faced operational pressures. Emirates Global Aluminium and Aluminium Bahrain experienced attacks. Qatar Aluminium operates at only 60% capacity. Its energy supplier was impacted.
On April 3, Emirates Global Aluminium announced delays. Full operations at the Al Taweelah smelter could take up to a year to restore.
Grant added that three Institute members reduced production. This was due to attacks on smelters or energy infrastructure. He anticipates continued production pressures in the coming period.
Reopening the Strait of Hormuz is crucial. It would allow producers to resume raw material storage. It would also enable the export of finished products. These products are currently held up in smelters. He noted disruptions are now affecting global supply chains. This includes Australia, a supplier of alumina to some smelters.
Globally, primary aluminum production rose by 0.9% year-on-year in March. It reached 6.302 million tons. However, the average daily output decreased by 0.3% compared to February.