Bahrain starts output cuts at world’s top aluminum smelter

Aluminium Bahrain BSC started a phased production shutdown at the world’s largest single-site smelter of the metal, deepening the disruptions that have rocked the industry and sent prices soaring amid the war in the Middle East.

The company, known as Alba, said it has initiated a shutdown of three production lines, which together represent 19% of its total output capacity of 1.6 million tons a year. The suspension will allow it to preserve its inventory of raw materials and keep other parts of the plant operating as maritime transit through the Strait of Hormuz is affected, it said.

Alba’s cutback is the latest event in the turmoil that has hit the global aluminum industry, with manufacturers facing a spike in prices and traders expecting widespread supply blockages. Prices on the London Metal Exchange have jumped to the highest level since 2022.