Vitol ships stranded aluminum through Strait of Hormuz

Vitol Group has shipped a stranded cargo of aluminum through the Strait of Hormuz, marking what appears to be the first known bulk transit of the metal through the waterway since the start of the Iran war in late February, according to Bloomberg.linkedin

The trading house sailed the Lowlands Corso, a Panama-flagged bulk carrier, through the southern portion of the strait late Friday afternoon local time, according to shipping data and a person familiar with the matter. The vessel is carrying approximately 35,000 tons of aluminum produced by Emirates Global Aluminium PJSC, worth roughly $110 million at current spot prices.x

Months of Waiting

The Lowlands Corso had been anchored at various locations off the western coast of the UAE since the war began, unable to transit the strait due to military operations and mine-laying that reduced shipping through the chokepoint to a fraction of pre-war levels. At its worst, traffic through Hormuz fell to about 5% of normal volumes, according to data from Kpler cited by CNN.cnn+1

Emirates Global Aluminium, the Middle East's top producer of the lightweight metal, was among the hardest hit by the closure. The company halted operations at its Al Taweelah smelter after an Iranian strike in late March, and had earlier explored using overseas stocks to fulfill contracts as ship-loading delays mounted.bloomberg+1

Peace Deal Opens the Way

The voyage comes as maritime traffic through Hormuz accelerates following the June 14 memorandum of understanding between the United States and Iran, which declared an "immediate and permanent" cessation of military operations. Under the deal, Iran committed to ensuring safe commercial passage through the strait and completing de-mining within 30 days.aljazeera+2

Persian Gulf exports have now returned to roughly 75% of pre-war levels, according to Bloomberg. Aluminum has fallen 6.4% this week alone as the interim peace deal fueled expectations of renewed Middle Eastern supply, capping a fourth consecutive weekly decline.mining+2

The cargo is set to unload in New Orleans, providing relief to a US market that has faced acute supply constraints since the conflict severed one of the world's most important shipping lanes for the metal. The Middle East accounts for nearly 10% of global aluminum production.bloomberg+1