Summary: The aluminum market is facing a significant supply shock following missile strikes on Emirates Global Aluminium’s (EGA) Al Taweelah site and damage to Aluminium Bahrain (Alba) facilities. As of April 3, EGA has halted operations at its 1.5 million-tonne-per-year smelter. The Gulf region accounts for nearly 9% of global primary aluminum, but its role in the export market is outsized, particularly for European and Asian extruders. Physical premiums are surging as the closure of the Strait of Hormuz traps existing inventory.

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