The world's largest single aluminum smelter reduces production by 19%, supply concerns may drive aluminum prices to rise beyond expectations

Bahrain Aluminum has begun phased production cuts, reducing annual capacity by 19% to save on raw materials, due to shipping disruptions in the Strait of Hormuz, facing difficulties in exporting finished metals and importing alumina raw materials. CITIC Securities pointed out that as the Israel-Palestine conflict escalates, risks to aluminum production capacity and energy supply are increasing, which may lead to aluminum prices rising beyond expectations. During the energy crisis of 2021-2022, aluminum prices increased by 60%/100%. Looking ahead, concerns about supply in the aluminum industry chain are intensifying, and expectations for price increases are strengthening