Delving deeper: Middle East aluminium crisis rattles domestic and global downstream supply chains
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Over the years, the Middle East has been a notable contributor to the global primary aluminium production and trade. Out of the 6-6.5 million tonnes produced in the region, 5-5.5 million tonnes are exported, underlining the lion’s share of the production being shipped overseas. This share accounts for about 9 per cent of the total primary aluminium trade volume in the global market. However, it is interesting to note that the Middle Eastern region, particularly the Gulf Cooperation Council, also contributes to the trade and export of aluminium downstream products.
Discover: The Gulf aluminium market risks, China impact, and logistics disruptions shaping pricing and trade in the Gulf Disruption Roadmap
Uday Patel, Principal Analyst at Wood Mackenzie, noted, “What this disruption highlights are how concentrated and fragile aluminium supply chains have become.”
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