Hormuz Blockade Impacts Aluminium Supply, Affecting Green Projects
En resumen
- Green infrastructure projects in Southeast Asia face uncertainty due to a blockade of the Strait of Hormuz, which has disrupted aluminium supplies following Iranian attacks on Middle Eastern smelters.
- Aluminium prices have surged, with significant production losses expected.
Resumen generado por IA
Por qué importa
Countries like Indonesia, Vietnam, and the Philippines are increasing green infrastructure due to high power bills from elevated oil and gas prices. However, these projects are now facing supply chain issues.
Countries such as Indonesia, Vietnam and the Philippines have installed more rooftop solar panels and other green infrastructure in recent years, driven by high power bills caused by elevated oil and gas prices. However, these green projects are facing uncertainties as the blockade of the Strait of Hormuz is affecting aluminium supplies.
Major aluminium smelters in the Middle East were struck by Iranian missile and drone attacks, according to ANZ Bank, noting the loss of nearly 1.6 million tonnes of production after the attacks on Emirates Global Aluminium’s Al Taweelah and ALBA facilities on March 28.
While Chinese companies are ramping up output of the metal, they face a regulatory cap of 45 million tonnes.
Aluminium prices on the London Metal Exchange have surged by more than 13 per cent since the start of the Iran war on February 28, or up 19 per cent in the year to date, according to Reuters. The metal’s benchmark price was trading at US$3,597 per tonne on Tuesday.
Overall, nearly 3 million tonnes of production may be affected, ANZ Bank said. According to Wood Mackenzie, a global energy research firm, the conflict could remove 3 million to 3.5 million tonnes of aluminium from production this year in the global market, which posted an output of just below 74 million tonnes in 2025.
Qué observar
Perspectiva de IA — posibilidades, no hechos
Continued volatility in aluminium prices.
Muy probable · Medio plazo
Potential delays or increased costs for green infrastructure projects in Southeast Asia.
Probable · Medio plazo
Preguntas abiertas
- What is the duration of the Strait of Hormuz blockade?
- Will Chinese companies be able to meet global demand despite regulatory caps?
- What is the long-term impact on green project financing and implementation?
- Are there alternative aluminium supply routes being explored?
