Uncertainty over shipping in the Strait of Hormuz is raising concerns for global trade, with the aluminium industry joining the oil and liquefied natural gas (LNG) sectors among those most affected.
Although oil and LNG exports have not seen major disruptions, fluctuating vessel traffic and ongoing security concerns are affecting confidence in one of the world’s most important shipping routes.
The uncertainty is raising concerns not only about aluminium exports from the Gulf but also about the raw materials and energy supplies needed to keep aluminium production running.
The Gulf Cooperation Council (GCC) exports around 5.5 million tonnes of primary aluminium every year, with almost all shipments passing through the Strait of Hormuz.
At the same time, Gulf smelters depend on imported alumina and bauxite delivered by sea, meaning any prolonged disruption could affect both incoming raw materials and outgoing aluminium exports.
Shipping concerns increased after Iran announced that the Strait of Hormuz had been closed following the
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