US-Iran War Impacts Global Aluminium Supply, Pressuring Costs for Aluminium Cups Manufacturers

The ongoing US-Iran conflict is increasingly exerting its influence on global aluminium production, with far-reaching implications for downstream industries—including manufacturers of Restaurant Aluminium Cups, Wholesale Cup Aluminium, and Custom 12 Oz Aluminum Cup like our company. Data shows that aluminium production in Gulf countries dropped by 6% in March, with the daily average output falling from 16,997 tonnes in February to 15,963 tonnes. It is worth noting that we have not yet obtained the final March production data for all smelters of our industry partners; as the complete dataset is expected to be released in May, the actual output is likely to be even lower than the current estimate.
The conflict has already left a distinct mark on the global aluminium market, with the publicly traded LME (London Metal Exchange) aluminium price soaring to a four-year high. For our enterprise, which specializes in producing thin aluminium cups—including Restaurant Aluminium Cups, Wholesale Cup Aluminium, and Custom 12 Oz Aluminum Cup—this sharp rise in aluminium prices has directly led to increased production costs and compressed profit margins, bringing significant operational pressure.

As the Strait of Hormuz remains closed, supplies of key raw materials such as bauxite and alumina have been cut off, forcing most smelters to deplete their existing raw material inventories. Additionally, three of our industry associates have announced production cuts following attacks on their smelting facilities or energy infrastructure, a trend that suggests the impact of the war on global aluminium production will continue to escalate in the coming period.
Even in cases of orderly production shutdowns, restarting a potline can take weeks or even months, meaning that global aluminium supply chains may require a prolonged period—potentially many months—to return to normal. For smelters that have suffered physical damage, the recovery process will be even more lengthy, further delaying the stabilization of aluminium supply and prices.
In 2025, the Gulf region's aluminium sector produced approximately 6.5 million tonnes of aluminium, accounting for 9% of global production capacity. Importantly, this region supplies around 15% of the EU's aluminium imports and 20% of the US's, making its production disruptions particularly impactful for global supply. For manufacturers focusing on Wholesale Cup Aluminium and Custom 12 Oz Aluminum Cup, the shortage of aluminium supply and rising prices have become key challenges affecting production schedules and profitability.
The reopening of the Strait of Hormuz is crucial to resolving the current supply crisis: it will allow aluminium producers to restock raw materials and export finished aluminium products that are currently stranded at smelters. The ripple effects of the supply disruption have even extended to Australia, a major supplier of alumina to Gulf smelters, creating a chain reaction across the global aluminium supply chain that further exacerbates cost pressures for downstream enterprises like ours.
Jonathan Grant, Secretary General of the IAI, emphasized the severity of the situation, noting that the conflict's impact on aluminium production is far from over. Complementing this regional impact, March's global primary aluminium production data provides a broader perspective: the estimated global primary aluminium production stands at 6,302 kt, with a daily average output of 203.3 kt. This daily average represents a 0.29% decrease compared to February. Breakdown by region includes: 3,795 kt in China, 130 kt in Africa, 334 kt in North America, 132 kt in South America, 421 kt in Asia (excluding China), 622 kt in Europe (including Russia), 159 kt in Oceania, and 495 kt in the GCC (Gulf) region. Overall, global primary aluminium production in March increased by 0.94% year-on-year, but this marginal growth does not offset the supply constraints and price hikes caused by regional conflicts—especially for thin aluminium cup manufacturers that rely heavily on stable aluminium supply and reasonable prices for products like Restaurant Aluminium Cups and Custom 12 Oz Aluminum Cup.

As a professional manufacturer of thin aluminium cups, we are closely monitoring changes in the global aluminium market and supply chain. The continuous rise in aluminium prices has directly increased our production costs for Wholesale Cup Aluminium, Restaurant Aluminium Cups, and Custom 12 Oz Aluminum Cup, leading to narrowed profit margins. We will continue to optimize our production processes and supply chain management to mitigate the impact of cost pressures, while remaining committed to providing high-quality aluminium cup products and services to our customers worldwide.