Alcoa Corporation, the largest aluminium producer in the United States, is fielding a rise in buyer inquiries and spot orders following the curtailment of production across Gulf state smelters. The shift comes as shipping through the Strait of Hormuz remains effectively closed, disrupting supply chains that millions of tonnes of aluminium and alumina depend on each year.
Figure 1: Alcoa Corporation logo representing the US-based aluminium producer [Courtesy: Business Wire]
Gulf aluminium production cuts across the Middle East, which accounts for approximately 9 per cent of global aluminium supply, have sent buyers seeking alternative sources. Alcoa new aluminium orders are already emerging for the second quarter and second half of 2026, according to the Company’s chief financial officer.
Alcoa’s CFO Outlines the Order Uplift
Alcoa Chief Financial Officer Molly Beerman addressed the supply shift at a JPMorgan Chase and Company conference on 17 Mar 2026. She confirmed the Company is seeing a direct response from customers who sourced a portion or the majority of their supply from Middle East smelters.
Figure 2: Industrial use of aluminium in manufacturing and fabrication processes [Courtesy: Freepik]
Ms Beerman stated: “We’re actually seeing an uptick in orders from customers, and inquiries related to the second quarter and second half of the year.”
She added, “We do have additional spot orders coming in, and that should help us later in the year.”
Four Million Metric Tons of Alcoa Alumina Previously Destined for the Gulf
The disruption extends beyond finished aluminium. Alcoa is also a major alumina producer and has been shipping approximately four million metric tons of alumina to Middle East smelters annually to power their operations. With the Strait of Hormuz now closed to effective shipping traffic, that material is being redirected.
Ms Beerman noted that all of the alumina supply that would normally have moved into the Middle East is now finding alternative destinations. She indicated the material is most likely moving into China, representing a significant reorientation of one of the world’s largest alumina trade flows.
Aluminium Prices and the Midwest Premium Record
Aluminium prices climbed to their highest point since 2022 last week after the United States and Israel began attacks on Iran, before paring back some of those gains. The Gulf aluminium production cuts contributed directly to the price spike as markets priced in the reduction in available supply.
Figure 3: Aluminium coils stored in a factory warehouse ready for distribution [Courtesy: Freepik]
The Midwest aluminium premium record was set last week, with the premium climbing to US$1.10 per pound. The Midwest premium represents the additional amount added to global benchmarks to deliver aluminium into the United States region, and its move to a fresh record reflects the tightening of supply available to American buyers in particular.
Industry Outlook
Gulf aluminium production cuts of this scale have not been seen in recent years and represent a meaningful structural shift in global supply availability. The Middle East accounts for approximately 9 per cent of global aluminium output, and any prolonged curtailment will continue to redirect buyer demand toward producers in North America, Australia, and other regions outside the conflict zone. The Midwest aluminium premium record set last week signals that US buyers are already pricing in sustained tightness, and further increases remain possible if the Strait of Hormuz closure extends into the second half of 2026.
Future Direction and Impact
Alcoa new aluminium orders flowing in for the second half of 2026 suggest the Company is well-positioned to capture demand displaced by the Gulf aluminium production cuts. The redirection of Alcoa’s own alumina shipments away from the Middle East and toward other markets also removes a key logistical uncertainty from its supply chain in the near term.
For those following the Midwest aluminium premium record and global aluminium markets, the pace at which Gulf smelters resume operations will be the critical variable. Until shipping through the Strait of Hormuz normalises, demand pressure on producers outside the region is likely to remain elevated, and Alcoa new aluminium orders could continue to build through the remainder of the year.
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Frequently Asked Questions
Q1. Why are Gulf aluminium production cuts happening?
Ans. Smelters reduced output after the Strait of Hormuz closure disrupted raw material supply following Middle East conflict.
Q2. How is Alcoa benefiting?
Ans. Alcoa is seeing increased spot orders and inquiries from buyers shifting away from Gulf suppliers.
Q3. What happened to Alcoa’s alumina shipments?
Ans. Around 4 million metric tons of alumina previously sent to the Gulf are being redirected, likely to China.
Q4. What is the Midwest aluminium premium record?
Ans. It hit a record US$1.10 per pound, reflecting tighter supply in the US market.
Q5. How did aluminium prices react?
Ans. Prices jumped to their highest since 2022 before easing slightly, while supply tightness persists.
Sources
Bloomberg News — Alcoa draws new aluminium orders as Gulf states curb production, 17 Mar 2026 https://www.bloomberg.com/news/articles/2026-03-17/alcoa-draws-new-aluminum-orders-as-gulf-states-curb-production
