Gulf Aluminium Supply Disruptions: Impact on Global Markets and Carbon Compliance

Geopolitical tensions and carbon regulations are decoupling aluminium prices from physical availability. Supply chain disruptions in the Gulf region, particularly through the Strait of Hormuz, are creating regional shortages and forcing a rethink of procurement strategies for European and Asian manufacturers. With GCC countries producing roughly 9% of global primary aluminium, production curtailments at major smelters like EGA and Alba are causing systemic constraints. The shift toward green metals pricing and stricter carbon compliance is further complicating the traditional LME benchmark system.