Now it’s aluminium’s turn. Iranian drones strike, prices soar
First oil and gas, then fertilizers. Now, the military escalation in the Strait of Hormuz is striking directly at the heart of the European manufacturing industry: aluminium.
The recent attacks on two Middle Eastern giants—EGA (Abu Dhabi) and Alba (Bahrain)—could potentially knock out 3.2 million tonnes of metal per year. We are talking about nearly 10% of the world’s primary aluminium production. As FACE, we raised the alarm back in mid-March through the words of our Secretary General, Mario Conserva: “If the reduction cells of the smelters stop, the molten metal will solidify inside, rendering the plants permanently unusable. If the price of aluminium doubles, the domino effect will overwhelm the entire real economy”.
This is not just a logistics issue. Between blocked shipping routes, severe shortages of alumina, and global protectionist policies (such as the 50% US tariffs), the industry’s breathing room is shrinking fast. If the situation does not improve within a few weeks, the domino effect will cascade down to automotive, construction, food packaging and pharmaceuticals.
Time is running out. While companies are currently relying on existing stockpiles, the real crunch is expected to hit in the third quarter. Coordinated action is urgently needed to protect European aluminium consumers and transformers.
The full article published by Huffington Post is available here.
