Aluminum Bahrain (Alba) announced on Sunday that it has begun closing three aluminum smelting lines, which account for 19% of its production capacity, in order to maintain operational continuity amidst ongoing shipping disruptions in the Strait of Hormuz. The company declared force majeure on March 4 due to its inability to ship to customers, highlighting the significant impact of regional logistical challenges on its operations. With an annual capacity of 1.62 million tons, Alba's production capacity is being severely affected by these unforeseen circumstances.

Simultaneously, Indian firm Hindalco Industries has suspended production of extruded aluminum products due to a shortage of gas supplies, a consequence of energy disruptions linked to the ongoing conflict in the Middle East. An internal notice obtained by Reuters revealed that the company, which is part of the Aditya Birla Group, declared force majeure for all customers of its extruded aluminum products on March 11. This production halt is particularly concerning given the wide applications of extruded aluminum in sectors like construction, electric vehicles, electronics, and solar panels, indicating potential wider supply chain disruptions across various industries.

This crisis comes during a period of severe gas shortages in India, causing significant operational challenges for companies reliant on energy to sustain production levels. As both Hindalco and Alba navigate these issues, the implications for the global aluminum market could be profound, with risks of increased prices and supply chain disruptions that may reverberate through multiple industries that utilize aluminum in their products.