India's Aluminum Industry Struggles with Supply Chain Disruptions and Rising Costs Amid West Asia Conflict

Published: Apr 8, 2026 14:55

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[SMM Aluminum Express News] India’s midstream and downstream aluminum industry is facing a severe crisis due to the ongoing West Asia conflict and disruptions in the Strait of Hormuz, according to the Aluminum Extrusion Manufacturers Association of India (ALEMAI). The conflict has broken supply chains for raw materials and aluminum scrap, causing production in the extrusion segment to drop sharply by 40–50%. Against an installed capacity of 4.2 million tons, extrusion units are currently operating at only 1.2–1.3 million ton, while rolled products stand at around 1.5 million tons. Rising input costs, especially for aluminum scrap, combined with higher logistics expenses and cheap imports, have significantly eroded the competitiveness of domestic producers.

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