Qatar's gas supply cuts trigger aluminum price rise
Aluminum just got pricier—trading higher this week—after Qatar's massive Qatalum smelter had to shut down.
The closure started March 3, triggered by gas supply cuts from QatarEnergy following disruptions linked to the Iran war and drone attacks on key LNG sites.
Norsk Hydro, which co-owns Qatalum, has told customers they can't fulfill contracts for now.
Qatalum's shutdown will affect the entire Gulf region
Qatalum usually produces over 600,000 tons of aluminum a year, but with the shutdown expected to be completed by the end of March (and a full restart possibly taking up to a year), supplies are tight.
The Gulf region, which makes about 8% of the world's aluminum, is especially feeling the pinch.
There are concerns about alumina—the raw material—after estimates showed just 61,000 tons of alumina on the water bound for the region's smelters, compared with Kpler's estimate of the GCC's average monthly alumina imports of 680,000 tons.
If this disruption drags on, it could keep prices high
With inventories under pressure and regional producers relying heavily on imported materials, this disruption could keep prices high—and could affect packaging and industries such as construction and transport if it drags on.