The escalation in the Middle East has triggered a rush to buy aluminium

This is according to the Financial Times.

Traders in Japan have stated that local car manufacturers and suppliers are also considering purchasing from Russia, although they boycotted the country following the full-scale invasion of Ukraine in 2022.

“We really don’t want to source from Russia, but we have no other choice,” said an unnamed Japanese trader.

Producers from the Gulf states, notably Aluminium Bahrain and Qatalum, have cut production, whilst power cuts and shipping bottlenecks have hit both raw material imports and exports.

Aluminium is widely used in sectors ranging from automotive manufacturing to the aerospace industry and construction.

Executives at automotive component manufacturers and aluminium producers have stated that carmakers are trying to build up stockpiles as the war enters its fourth week.

“If the situation continues, there will be more panic buying. We have weathered crises in the past, but this one is very different,” said the head of one aluminium production company.

Several Western carmakers told the Financial Times that they are having trouble securing new supplies of aluminium. Many are using up stocks, which are expected to last for several months.

One of the sources noted that a large consignment of aluminium left the Persian Gulf shortly before the war began. Another car manufacturer said it is using scrap metal instead of new metal wherever possible.

Europe, the US and Japan are major importers of aluminium from the Persian Gulf, which accounts for almost 10% of global refined aluminium production. Europe sources 14% of its imports from the region, whilst Japan sources 25%.