Strait of Hormuz disruptions and Iran tensions are driving up aluminum prices and premiums. Aluminium Bahrain and Qatalum have cut output, while feedstock is tight. Rerouting via Port of Sohar or Saudi ports raises costs and delays. Buyers are turning to China, India, Russia, Canada, and scrap to offset risk. Prolonged disruption could reduce Middle East market share and reprice it as higher-risk supply.

Jan-Feb 2026 China magnesium exports reached 72.7kt, up 3.4kt YoY. Magnesium alloy led with +33.1% YoY, orders booked through April. Magnesium ingot fell 6.8% due to weak European demand, while powder grew 10.3%. However, US-Israel conflict disrupted Middle East aluminum plants, halting regional magnesium orders and pressuring Q2 outlook despite the strong start.

According to Hydro’s official website on March 12, after Qatalum’s natural gas supplier confirmed that it would maintain a lower supply level, Qatalum decided to stop further production cuts and shutdowns and maintain an operating rate of 60. These production cuts were carried out safely and in a controlled manner, and with the operating rate maintained at 60, this improved the conditions for a future restart. It is not yet known when the restart will begin.