[SMM Aluminum Flash News] Strait of Hormuz Uncertainty Continues to Pressure Global Aluminum Supply Chains

Published: Jul 2, 2026 10:05

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Uncertainty over shipping through the Strait of Hormuz continues as conflicting statements from Iran and the US cloud the waterway's operational status. Vessel traffic dropped to just 12 transits on June 21 from 35 a day earlier, with some ships switching off AIS tracking systems amid security concerns. Around 500 vessels, including 220 oil tankers, remain stranded in the Persian Gulf, and shipping recovery could take months. As the Strait handles exports of around 5.5 million tonnes of GCC primary aluminum, ongoing disruptions continue to weigh on global aluminum supply chains. Market participants also remain concerned that prolonged interruptions to crude oil and LNG shipments could raise energy costs, increasing production pressure on aluminum smelters and downstream manufacturers worldwide.

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