GCC Aluminium Output Falls 6% in March Amid Iran War

Aluminium production in Gulf Cooperation Council (GCC) countries fell 6 percent in March to an average of 15,963 tonnes per day, down from 16,997 tonnes per day in February, according to the International Aluminium Institute (IAI) report released April 20, 2026. The decline was driven by the US-Iran war, which began on February 28 and disrupted supply chains and production facilities across the region. A ceasefire has been in place since April 8, but Washington and Tehran have blocked transit through the Strait of Hormuz.

Production Impact and Market Response

The war’s impact on aluminium markets has been immediate and substantial. London Metal Exchange prices reached a four-year high of $3,565 per tonne as a result of the production disruption, according to the IAI. Most smelters are drawing down raw-material stocks as the Strait of Hormuz closure cut off bauxite and alumina supplies. Three IAI members have announced production cuts following attacks on their smelters or energy infrastructure.

Major Producer Disruptions

In early March, two of the GCC’s largest aluminium producers were directly affected by the conflict. The UAE’s Emirates Global Aluminum (EGA) and Aluminum Bahrain (Alba) were both hit by Iranian strikes.

EGA’s Al Taweelah smelter, one of the world’s largest, sustained damage requiring significant recovery time. EGA has said preliminary assessment indicates it will take at least 12 months to restore production at the facility.

Alba declared force majeure on March 4 following the effective closure of the Strait of Hormuz, which prevented shipments to customers and disrupted inbound supplies of alumina, a key feedstock. Force majeure is a mechanism enabling a party to terminate or suspend a contract due to an unexpected and exceptional event, without being liable for damages.

Global Supply Chain Effects

The GCC’s aluminium sector produced approximately 6.5 million tonnes in 2025, representing 9 percent of global capacity. However, the region accounts for around 15 percent of imports into the European Union and 20 percent into the United States, making the production disruption a significant global concern.

The IAI warned that recovery will extend beyond immediate reopening of facilities. “Even after an orderly shutdown, restarting a potline can take weeks or months, so supply chains may need many months to normalise. For facilities that sustained damage, recovery will take longer still,” the institute stated.

The impact is extending to suppliers as far as Australia, which supplies alumina to some Gulf smelters. The IAI said reopening the Strait of Hormuz is essential to allow producers to restock raw materials and export finished products that have been stranded at smelters.

More than 20 percent of the world’s oil and gas supplies pass through the narrow Strait of Hormuz, underscoring the strategic importance of restoring transit through the waterway.

FAQ

Q: How much did GCC aluminium production decline in March 2026? A: Production fell 6 percent in March to 15,963 tonnes per day, down from 16,997 tonnes per day in February 2026, according to the International Aluminium Institute.

Q: Which major aluminium producers were affected by Iranian strikes? A: The UAE’s Emirates Global Aluminum (EGA) and Aluminum Bahrain (Alba) were both hit by Iranian strikes in early March. EGA’s Al Taweelah smelter will require at least 12 months to restore production, while Alba declared force majeure on March 4 due to Strait of Hormuz closure.

Q: How does GCC aluminium production affect global markets? A: The GCC produced 6.5 million tonnes in 2025 (9 percent of global capacity) but represents 15 percent of European Union imports and 20 percent of US imports, making the regional disruption a significant global supply concern.