Escalation in the Middle East has caused a global aluminum shortage

Hostilities between the US, Israel and Iran have caused serious disruptions in the supply of aluminum, which provides about 10% of global production.

This is reported by the Financial Times.

Due to the energy blockade and shelling, large manufacturers in the region began to suspend production facilities and declare force majeure under contracts with partners in Europe and the United States.

Analysts warn that the situation could lead to a prolonged deficit on the global market, as the restoration of full-fledged operations of enterprises could take up to a year.

In particular, Bahraini company Aluminium Bahrain and Norwegian Norsk Hydro announced the suspension of some production lines. Also, the Qatalum plant in Qatar began to curtail work after QatarEnergy stated that it was unable to provide the company with the gas necessary for metal smelting.

Experts note that this resource shock is occurring against the backdrop of Russia’s attempts to use raw material exports to destabilize the global economy.

They estimate that it could take six to twelve months for the industry to fully resume operations. As a result, Western industrial companies are already looking for alternative logistics and supply solutions.

It was previously reported that Iran’s threats to ships in the Strait of Hormuz have caused a sharp increase in world oil prices and may reverse the trend of declining Russian oil revenues.

As a reminder, QatarEnergy, one of the world’s largest natural gas producers, completely stopped production after Iranian “Shaheed” strikes on its facilities.