Wedoany.com Report on Mar 16th, Aluminium Bahrain B.S.C. (Alba), the world's third-largest aluminum smelter headquartered in Bahrain, announced on March 15th that it will cut production capacity at three potlines due to disruptions in shipping routes affecting raw material supply and product exports. The shutdown involves an annual capacity of 310,000 tons, representing approximately 19% of its total capacity.

Alba possesses a total annual aluminum production capacity of 1.62 million tons. Following this selective shutdown of three potlines, it will retain an operational capacity of approximately 1.31 million tons per year. The company declared force majeure on some contracts on March 4th and made this decision after evaluation, aiming to optimize existing alumina inventory and maintain the efficient operation of the remaining production lines. This move can save approximately 1,686 tons of alumina consumption per day.

This production cut, combined with other disruptions in the region, is impacting global supply. The Middle East accounts for about 9% of global aluminum capacity. Previously, Qatar Aluminum (Qatalum) also experienced operational fluctuations. Affected by supply uncertainties, the aluminum price on the London Metal Exchange has risen to $3,546.50 per ton, nearing a four-year high. Alba stated it will utilize the shutdown period to conduct asset maintenance on the relevant production lines.