Carmakers face aluminium squeeze amid Middle East conflict

The war in the Middle East has disrupted aluminium supplies, prompting carmakers to build up stockpiles amid fears of shortages, the Financial Times reported.

Producers in the Gulf have cut output as shipping through the Strait of Hormuz remains severely restricted. The region accounts for around 10 per cent of global aluminium production, with Europe importing about 14 per cent and Japan up to 25 per cent from Gulf suppliers.

Manufacturers are relying on existing inventories, expected to last only a few months. Some companies are already considering sourcing aluminium from Russia or substituting it with recycled scrap.

Prices have surged since the conflict began, with aluminium up 12 per cent and regional premiums rising by 30 to 40 per cent. Shortages are particularly acute for specialised alloys used in the automotive industry.

Analysts warn that if disruption continues, production could begin to slow within four months. Some European carmakers may be forced to cut output as early as the summer, while finding alternative supply chains could take up to 18 months.

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