Executives from automakers and auto parts suppliers have told the Financial Times<\/em> that companies are building emergency reserves as the conflict enters its fourth week.<\/p>\n \u201cIf the situation continues, there will be more panic buying,\u201d<\/em> said an aluminum industry executive. \u201cThis crisis is very different from previous ones.\u201d<\/em><\/p>\n NEWSLETTER TABLE TALK<\/p>\n Several Western carmakers report difficulty securing new aluminum supplies, relying on existing inventories expected to last only a few months. One company noted that a major shipment left the Gulf just before the conflict began, while others are maximizing use of recycled scrap metal to offset shortages.<\/p>\n In Japan, companies are considering sourcing aluminum from Russia despite ongoing boycotts following Moscow\u2019s 2022 invasion of Ukraine. Koji Sato<\/span><\/span>, CEO of Toyota, acknowledged that Japanese automakers are exploring alternative suppliers due to their reliance on Gulf imports.<\/p>\n Europe, the US, and Japan import significant quantities of Gulf aluminum, which accounts for roughly 10% of global refined metal production. European imports from the Gulf make up 14% of demand, while Japan relies on 25%. The region\u2019s supplies are vulnerable to shipping delays through the Strait of Hormuz<\/span><\/span>, and rising natural gas prices have further reduced output.<\/p>\n Automotive executives warn that production may need to slow by mid-year unless Gulf shipments resume. One Japanese carmaker described the market as \u201cextremely turbulent,\u201d<\/em> predicting potential production cuts within four months if supplies remain constrained.<\/p>\n Aluminum prices on the London Metal Exchange spiked up to 12% after the conflict began, with premiums in the US, Europe, and Japan rising even higher. Certain specialized products, such as alloys for car wheels and engine blocks, are in acute shortage.<\/p>\n Industry experts caution that automakers could take up to 18 months to secure alternative suppliers that meet their strict specifications. Recent events, including a fire at a New York aluminum plant, have already disrupted production of popular vehicles like the Ford F-150.<\/p>\n Dan Hers, a supply chain specialist at AlixPartners, told the Financial Times<\/em><\/a> that companies cannot afford further disruption or unexpected price hikes, especially amid tariffs and other supply chain challenges from the past year.<\/p>\n <\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":" … ranging from automotive<\/span> to aerospace and construction. Executives from automakers<\/span> and … your inbox. Automakers<\/span> seek alternative sources Several Western carmakers<\/span> report difficulty … shipments resume. One Japanese carmaker<\/span> described the market as \u00e2\u0080\u009cextremely …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-134770","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/134770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=134770"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/134770\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=134770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=134770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=134770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Never miss a story.
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Automakers seek alternative sources<\/h3>\n
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Regional impact and shipping risks<\/h3>\n
Price surges and supply chain stress<\/h3>\n