Conflict in the Middle East may lead to aluminum shortages in the automotive industry

The conflict in the Middle East has triggered "panic purchases" of aluminum by some of the world's largest automakers amid fears that stocks of raw materials could run out within months if the conflict continues. This was reported on March 24 by the Financial Times (FT) newspaper.

According to her, manufacturers from the Persian Gulf countries, including Aluminum Bahrain and Qatalum, have reduced production, as power outages and transportation problems negatively affected the import and export of raw materials. Executives from automotive parts and aluminum companies said automakers were trying to build up reserve stocks. The source noted that the industry has experienced crises before, but this one is unlike the others.

Representatives of Japanese companies shared that the country's automakers and suppliers are also considering the possibility of purchasing raw materials from Russia. Toyota CEO Koji Sato said that Japanese automakers are working to find alternative sources of aluminum, noting the country's dependence on the Middle East in terms of supplies of this metal.

One of the Japanese suppliers of components complained that supply disruptions could lead to a reduction in production. Another source told the publication that European automakers may have to cut production as early as June or July if the conflict persists.

Europe, the United States and Japan are major importers of aluminum from the Persian Gulf countries, accounting for almost 10% of global aluminum production. Japan imports 25% of all necessary aluminum from the region, while Europe provides about 14% of its imports, the note says.

Dubai shock: deliveries of cars from the UAE to Russia stopped

How will the conflict in the Middle East affect the Russian car market

Earlier, on March 4, it was reported that amid a sharp escalation of the conflict in the Middle East, importers suspended car delivery services from the UAE. Irina Frank, CEO of Frank Auto, told Izvestia about this. Currently, no one undertakes to predict the timing of the resumption of car deliveries from this country, she noted. The main problem lies not so much in the shelling of the United Arab Emirates as in serious logistical difficulties, the expert added.

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