Author：Wall Street CN

The world's largest single aluminum smelter has been forced to reduce production due to disruptions in raw material supply, bringing to light a crisis in the Middle East's aluminum supply chain.

Aluminium Bahrain BSC (Alba) announced thatThe phased shutdown of three production lines has been initiated, affecting 19% of the company's total capacity. The direct cause of this action is the actual disruption of shipping in the Strait of Hormuz, which has severely hampered both metal exports and alumina raw material imports.

The company stated that the shutdown was a "controlled and safe operational measure" designed to ensure business continuity, optimize the utilization of existing raw material inventory, and maintain overall operational stability. Meanwhile, Trump has rejected the existing Iran deal, tensions in the Middle East continue to escalate, and the timeline for supply chain recovery remains highly uncertain.

Three production lines were shut down, resulting in a loss of large-scale production capacity.

Alba operates the world's largest single aluminum smelter, with a total annual capacity of 1.6 million tons. This shutdown affects reduction production lines 1, 2, and 3, representing 19% of the total capacity. The company will continue to maintain the normal operation of reduction lines 4, 5, and 6, and will implement structured asset maintenance and upkeep on the suspended lines to ensure they are ready for resumption of production.

Alba is majority-owned by the Bahrain state. The company stated that this "targeted action on specific production lines" aims to optimize resource allocation and prioritize operational stability given limited raw material inventory.

The suspension of flights to and from the Hormuz affects the entire Middle East aluminum industry.

The fundamental cause of this production halt is the disruption of shipping in the Strait of Hormuz.The strait is a key passage for the Middle East's metal exports and the import of raw materials such as alumina. The actual disruption has put Alba and other Middle Eastern aluminum smelters under the dual pressure of raw material shortages and obstructed finished product shipments.

Alumina is a core raw material for aluminum production. Once import channels are blocked, smelters' inventories are depleted rapidly, forcing them to choose between maintaining full production capacity and ensuring inventory safety. Alba's decision to proactively reduce production is a preventative measure to manage working capital and mitigate the risk of short-term supply fluctuations.

The company seeks alternative solutions to cope with supply fluctuations.

According to the company statement, Alba is actively developing alternative supply channels to reduce its exposure to the current supply disruptions. This move indicates that management anticipates the situation in the Strait of Hormuz will be difficult to ease quickly in the short term and is shifting its crisis response from passive defense to proactive planning.

The company emphasized that the core objectives of this production cut include: maintaining production resilience, prudently managing working capital, and establishing a systematic maintenance mechanism for the suspended lines. This statement aims to signal to the market that the production halt is reversible and that the relevant capacity can be restarted once the supply chain recovers.

However, with Trump's explicit rejection of the existing Iran deal and the continued tension in the Middle East, the operating prospects of Alba and other Middle Eastern aluminum producers remain under considerable pressure, and market expectations for regional aluminum supply in the short term are becoming more cautious.