Indonesia’s 7.7-Magnitude Earthquake Had a Relatively Small Impact on the Aluminum Industry Chain, With the Shock Nearly Zero

Published: Aug 15, 2026 10:39

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SMM tracking feedback: The 7.7-magnitude earthquake on Flores Island, Indonesia, had a relatively small impact on the aluminum industry chain. In terms of capacity distribution, bauxite, alumina, and the vast majority of aluminum capacity are concentrated in western Indonesia, generally more than 1,400 km from the epicenter; even the closest aluminum smelter—Sulawesi Morowali Huachin Aluminum—was approximately 624 km away, still outside the 300 km damage radius. Coupled with a tsunami wave height of less than 0.4 meters, the actual supply shock was virtually zero. On the pricing front, it may at most show a short-term sentiment pulse of 0–1%, which is expected to be unwound within 1–3 days, without changing the medium-term trend.

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