European Aluminum Billet Premium Doubles to $1,100, Pressure on Construction and Transportation Sectors
May 1, 2026
As the U.S.-Israel-Iran war continues for two months, the European aluminum billet market is experiencing an unprecedented supply crisis. With exports from the Middle East severely obstructed, European aluminum billet premiums have doubled compared to pre-war levels, putting significant pressure on consumers in the construction and transportation industries.
The Gulf region has traditionally been a key supplier of primary aluminum, aluminum billets, and other alloys to Europe, but exports from the region sharply declined after shipping through the Strait of Hormuz nearly halted. At the same time, aluminum production in the Middle East itself has been heavily impacted — the region has an annual production capacity of 7 million tons, accounting for 9% of global supply.
In Rotterdam, the premium for aluminum extrusion billets has surged from $530 per ton before the war to $1,100 as of last Friday. A source from a metal logistics company warned that as inventories of Gulf producers in Europe gradually deplete, the supply situation is expected to tighten further in the coming weeks. Even more concerning, Emirates Global Aluminium (EGA) declared force majeure on some of its European customers’ aluminum billet contracts after one of its UAE smelters was attacked by Iran at the end of March.
In addition, Rusal’s only aluminum smelter in Sweden, Kubal, though still producing, suspended deliveries on April 9. The reason is related to its CEO being investigated in Sweden for allegedly violating sanctions associated with the Russia-Ukraine war.
