7th March 2026
Essential industrial products like aluminium, sulphur, fertilisers, and several dry‑bulk commodities are already being hit hard by Gulf refinery and processing shutdowns.
The Strait of Hormuz disruption has choked shipping, forced major plants offline, and triggered sharp price spikes and supply shortages.
Aluminium — production shutting down, prices jumping
The Gulf produces around 8-10% of global aluminium, so any disruption there has immediate global effects.
What's happening now
Qatalum (Qatar) one of the world's largest smelters has begun a controlled shutdown after QatarEnergy halted operations following Iranian strikes.
Analysts warn the plant could be offline for months, pushing the company into losses.
Aluminium prices have already surged 3.8% in response.
ING reports that the Middle East conflict has tilted aluminium "further to the upside", with supply disruptions now the central risk.
What this means
Expect higher aluminium prices, especially for manufacturers in Europe.
Physical premiums (the extra cost to secure real metal) are rising.
Supply chains for cans, construction materials, and automotive parts will feel pressure.
Sulphur — production halted, global fertiliser supply threatened
Sulphur is a critical input for fertilisers (especially phosphate fertilisers). The Gulf is a major exporter.
What's happening now
Qatar has halted sulphur production at its Ras Laffan facility — one of the world's key sulphur hubs.
Analysts warn this creates "extraordinary supply chain vulnerabilities" because sulphur production is highly concentrated in the Gulf.
What this means
Fertiliser prices are likely to rise sharply.
Knock‑on effects for global agriculture, food prices, and supply chains.
Europe, which imports fertiliser feedstocks, will feel the impact quickly.
Fertilisers & dry‑bulk commodities — shipping collapse
The Strait of Hormuz shutdown is not just about oil it's paralysing dry‑bulk shipping.
Key facts
Dry‑bulk transits through Hormuz are down 91%.
Around 16-18% of global seaborne fertiliser exports come from the Middle East Gulf.
Hundreds of bulk carriers are trapped or rerouted.
What this means
Fertiliser shortages - higher food prices.
Delays for cement, clinker, bauxite, and other industrial inputs.
Higher freight rates globally.
LNG & petrochemicals — major outages
Qatar's Ras Laffan LNG complex is offline, which affects not only gas but also petrochemical by‑products used in plastics and industrial chemicals.
This will ripple into:
plastics
solvents
industrial gases
chemical feedstocks