Aluminum Hits Highest Level Since 2022 as Alba and Qatalum Declare Force Majeure Under Hormuz Crisis

aluminum alüminyum LME Alba Aluminium Bahrain Qatalum Norsk Hydro force majeure Strait of Hormuz Ras Taffan Bloomberg

Aluminum facility imagery representing regional producers declaring force majeure under the Hormuz blockade

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Escalating conflict in the Middle East after Israeli and U.S. military operations against Iran sent a destructive shock wave through the global aluminum market. With shipments through the Strait of Hormuz — the main transit corridor for the world's aluminum and its raw materials — at a standstill, regional industrial giants declared force majeure in succession.

In the first week of the crisis, three-month aluminum on the London Metal Exchange (LME) jumped 9.7% in a single week. The price climbed from $3,140 to $3,446 per ton — the highest since 2022. Alba (Aluminium Bahrain) said it had halted shipments and declared force majeure due solely to transit restrictions in the strait, despite no physical damage to its smelters. Qatar's state-owned Qatalum facility halted production entirely after a drone strike on the gas-supplying Ras Taffan complex; European partner Norsk Hydro said the outage will last through end-March, with a full restart taking 6-12 months.

According to StoneX and Morgan Stanley, the Middle East accounts for 8-9% of global aluminum production — but Europe took the biggest hit. Europe sourced 21% of its primary and alloyed aluminum (around 1.3 million tons) directly from the Middle East and Egypt last year. Once supply chains broke, panic buying began in Europe.

Premiums European buyers pay above the LME to secure supply jumped to a record $378/ton for March delivery and $428/ton for April — the highest in 3.5 years. As Bloomberg notes, the crisis exposes the fragility of the global supply network running from bauxite mines to alumina refineries and smelters.

Key Takeaways:
1. LME 3-month aluminum rose 9.7% in a week: $3,140 → $3,446/t (highest since 2022).
2. Alba (Bahrain) halted shipments; Qatalum (Qatar) shut down after the Ras Taffan drone strike.
3. Norsk Hydro: Qatalum's full restart could take 6-12 months.
4. Europe imports 21% of its aluminum (1.3 million tons) from Mid East/Egypt.
5. March premium hit $378/t and April $428/t — a 3.5-year record.

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