The Aluminum Extrusion Manufacturers Association of India (ALEMAI) reports that the country’s aluminum extrusion sector has sharply reduced production capacity in response to the escalating crisis in West Asia. Heightened geopolitical tensions in the region have disrupted global supply chains, compelling companies to scale back operations from an average annual output of 1.2–1.3 million tons (approximately 1 lakh tons/month) to just 50,000–60,000 tons at present.
ALEMAI Secretary Ankur Aggarwal stated during an interaction, “The production capacity has been scaled down. Previously, we were producing an average of 1.2–1.3 million tons annually, with around 1 lakh tons each month. This has now been reduced to 50,000–60,000 tons per month.”
Highlighting the industry’s challenges, ALEMAI President Jitendra Chopra stated, “India’s midstream and downstream aluminum sectors are facing a sharp contraction, with production dropping by 40% to 50%. Although the country has an installed capacity of 4.2 million tons, actual utilization remains far below its potential.” He observed that the sector is currently navigating a period of significant stress, facing pressures that could impact its overall stability.
The ongoing West Asia crisis has severely disrupted supply chains and energy availability for the aluminum extrusion industry, with 50% of raw materials from the region now subject to unloading delays. The conflict has brought container unloading at West Asian ports to a complete halt, disrupting raw material supply and driving conversion costs up by 25% amid the ensuing energy crisis.
Around 30–35% of aluminum extrusion plants had to shut down due to LPG supply disruptions. Over the past 5–6 days, supplies have partially resumed to 40–50% of normal levels, allowing these plants to operate at 35–40% capacity, though LPG and PNG shortages continue to constrain full operations.