Aluminum supply from the Middle East to Japan has dropped sharply due to the Strait of Hormuz blockade. Japan imported 10 percent less aluminum from the region in March compared to a year earlier. The Middle East traditionally provided 20 percent of Japan’s raw aluminum imports. The effective closure of the vital shipping lane disrupted bauxite supplies and forced smelting cuts. As a result, aluminum supply chains have tightened rapidly across global markets.
Japan depends entirely on imports for its raw aluminum needs. Major suppliers include the United Arab Emirates and Saudi Arabia. Meanwhile, the blockade halted operations in countries such as Qatar and Bahrain. Moreover, Emirates Global Aluminium PJSC sustained extensive damage from an attack in late March. The company expects its full recovery to take up to one year. Consequently, the aluminum supply from the region faces prolonged pressure.
Trade data from the Finance Ministry showed a 13.1 percent month-on-month drop in March. In response, Japanese firms have accelerated efforts to source metal from Australia and India. The Japan Aluminium Association said its members face no immediate production disruptions. However, raw aluminum prices have climbed significantly on international exchanges. The three-month futures price on the London Metal Exchange reached $3,657.50 per ton on May 14. That marked a 16 percent increase from levels before the US and Israeli attacks on Iran.
Domestic aluminum companies have begun passing higher costs to customers. UACJ Corp., the industry leader, confirmed it will generally pass on metal price increases to end products. Its offerings include automotive parts, beverage cans, and construction materials. Nippon Fruehauf Co. raised product prices by about 15 percent from April 20. Additionally, MA Aluminum Corp. plans to increase prices on all products from July 1 shipments. These price hikes reflect the sustained aluminum supply crunch.
Commodity analyst Naohiro Niimura warned that supply constraints will persist. “Even after the situation stabilizes, restoring infrastructure will take time,” he said. Therefore, high prices could spread to many consumer goods. Beverage cans, aluminum wheels, and other everyday items may become more expensive. The aluminum supply disruption thus carries significant implications for household budgets. Japanese manufacturers continue to monitor developments while seeking alternative suppliers.
