On March 12th, according to media reports, due to the disruption of aluminum shipments in the Middle East caused by the closure of the Strait of Hormuz, Mercuria Energy Group Ltd., the world’s largest independent integrated energy and commodity trading group, plans to withdraw a large amount of aluminum from the storage facilities of the London Metal Exchange (LME) to alleviate supply pressure in the European and American markets.
It is reported that since last week, the war between the United States and Israel against Iran has led to the closure of the Strait of Hormuz, a vital shipping lane. The blockade of this important shipping lane has directly “frozen” the shipment of aluminum products in the Middle East, further straining the aluminum supply in Europe and the United States. The Middle East is a globally significant primary aluminum production region, accounting for approximately 9% of global primary aluminum production. Its aluminum product exports heavily rely on shipping through the Strait of Hormuz, and the closure of the strait has directly led to a contraction in regional supply.
According to sources familiar with the matter, Swiss company Mercuria has cancelled or designated the delivery of nearly 100,000 tons of aluminum from its LME-approved warehouse in Port Klang on Monday. This move is believed to be a response by Mercuria to fulfill its supply obligations to customers in Europe and the United States, where the transportation, construction, and packaging industries have experienced aluminum supply shortages.
It is worth noting that the Strait of Hormuz not only affects the export of aluminum products but also restricts the import of raw materials for aluminum production in the Middle East. Although the Middle East has high electrolytic aluminum production capacity, its alumina self-sufficiency rate is extremely low. Most countries need to import bauxite and alumina through the Strait of Hormuz. If the strait is closed for a long time, local electrolytic aluminum plants may face large-scale production cuts or even shutdowns, further exacerbating the tight global aluminum supply situation. Currently, Mercuria has not publicly commented on the withdrawal of aluminum from LME warehouses.
Post time: Mar-13-2026