---
title: "The world's largest single aluminum smelter reduces production by 19%, supply concerns may drive aluminum prices to rise beyond expectations"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/279175462.md"
description: "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"
datetime: "2026-03-15T23:53:16.000Z"
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  - [en](https://longbridge.com/en/news/279175462.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/279175462.md)
---

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

Bahrain Aluminum, which operates the world's largest single aluminum smelter, has begun phased production cuts to conserve raw material reserves. The company stated that it has initiated the shutdown procedures for three production lines, which together account for 19% of its annual total capacity of 1.6 million tons. Like other aluminum smelters in the Middle East, this state-owned holding company faces a dual dilemma of finished metal being unable to be exported and alumina raw materials being unable to be imported due to the shipping stagnation in the Strait of Hormuz.

CITIC Securities research report states that with the resurgence of conflict between Israel and Palestine, the risks to aluminum production capacity, shipping capacity, and energy supply in the Middle East region have significantly increased. The subsequent production disruptions in the Middle East aluminum supply chain and even the risk of a secondary energy crisis overseas cannot be ignored. Reviewing the energy crisis of 2021-2022, aluminum prices and the sector saw maximum increases of 60%/100%. Looking ahead, concerns over aluminum supply chain may lead to price increases beyond CITIC Securities' previous expectations. Coupled with the strong long-term supply-demand logic in the aluminum industry, the outlook for the aluminum sector's price valuation remains optimistic.

According to the financial news agency's thematic database, among the relevant listed companies:

**Yunnan Aluminum** is the absolute leader in the domestic green hydropower aluminum sector, with a full industry chain layout from bauxite to aluminum processing, currently having an electrolytic aluminum production capacity of 3.05 million tons.

**Tianshan Aluminum** has established a complete industrial chain closed loop from bauxite, alumina, prebaked anodes, self-supplied electricity, to electrolytic aluminum, high-purity aluminum, and deep-processed aluminum products. The company's compliant approved electrolytic aluminum capacity is 1.4 million tons/year.

(Financial News Agency)

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