June 1, 2026
TOKYO – The deteriorating situation in the Middle East is affecting the supply of aluminum. With its low electricity costs, the Middle East is a major global exporter of raw aluminum from where Japan has traditionally sourced 20% of its supply. However, due to the effective blockade of the Strait of Hormuz, Japan’s aluminum imports from the Middle East fell by 10% in March.
Strains in supply of the metal have driven up prices, leading some companies in Japan to increase prices on related products.
Aluminum is produced from bauxite. While China accounted for about 60% of global aluminum production in 2025, most of that figure served for domestic consumption.
The Middle East, boasting abundant resources such as oil and natural gas and low electricity costs, accounts for 8% of global production and is a major exporter of the metal.
Japan relies entirely on imports for raw aluminum, with 20% sourced from the Middle East, including the United Arab Emirates and Saudi Arabia.
The effective blockade of the Strait of Hormuz has disrupted the bauxite supply chain, leading to a reduction in smelting operations in countries such as Qatar and Bahrain.
Emirates Global Aluminium PJSC, a major aluminum producer in the UAE, suffered extensive damage from an attack by Iran in late March. It is expected to take up to a year for the firm to make a full recovery.
According to Finance Ministry trade statistics, these factors caused imports of raw aluminum from the Middle East to drop by 13.1% month-on-month in March.
16% price rise
Companies in Japan are pursuing alternative source countries such as Australia and India. The Japan Aluminium Association said there will be no immediate impact on the production activities of its member companies.
However, raw aluminum prices are rising due to tight global supply and demand. On the London Metal Exchange, the three-month future price of aluminum, a key indicator of the prices, was $3,657.50 per ton on May 14, up 16% from before the United States and Israel’s attacks on Iran.
Passing costs on to customers
Domestic aluminum companies are exploring ways to pass these costs onto the price of their products.
UACJ Corp., the industry leader, deals with a wide range of aluminum products including automotive parts, beverage cans and construction materials. “We will generally pass on increases in metal prices to that of our end products,” UACJ President Shinji Tanaka said.
Nippon Fruehauf Co. a manufacturer of truck beds, trailers and other products based in Atsugi, Kanagawa Prefecture, raised product prices by about 15% from April 20. MA Aluminum Corp. in Susono, Shizuoka Prefecture, plans to raise prices for all products, including aluminum sheets and foil, starting with shipments set for July 1.
“Even after the situation in the Middle East stabilizes, it will take time to restore infrastructure and resolve supply constraints,” said Naohiro Niimura, a co-representative of Market Risk Advisory Co., which analyzes commodity markets
If prices remain high, price increases could spread to a wide range of products, such as beverage cans and aluminum wheels, potentially having a significant impact on consumers.