Gulf Aluminium Production Drops to Lowest Level in More Than Ten Years Amid Iran Conflict

Primary aluminium production across the Gulf region fell sharply in April, reaching its lowest level in over a decade as the ongoing conflict involving Iran disrupted operations at regional smelters, according to data released Wednesday by the International Aluminium Institute (IAI).

Preliminary figures from the IAI showed Gulf producers generated 330,000 metric tons of primary aluminium during the month, representing a 35% decline compared with April 2025.

Although the Gulf contributes around 8% of total global primary aluminium production, the region plays a critical role in international supply chains, accounting for approximately 28% of Japan’s aluminium imports and 21% of imports into the United States.

IAI Secretary General Jonathan Grant said the latest figures suggest conditions may continue to worsen rather than stabilize.

“What we are seeing in April’s numbers is probably not the floor,” Grant said. “It is a further deterioration that brings Gulf output to levels not seen in over a decade.”

He explained that smelters in the region have been unable to replenish raw material inventories through the Strait of Hormuz because of the conflict-related disruptions. As a result, producers are increasingly relying on alternative land transportation routes in an effort to maintain operations.

The data also showed that global primary aluminium production declined 2.1% year-on-year to 5.92 million metric tons.

In contrast, estimated aluminium production in China increased by 1.5% during the same period, reaching 3.68 million metric tons.