Global car manufacturers are engaging in panic buying as the Middle East conflict enters its fourth week, threatening to exhaust critical aluminum inventories within four months.

Production at major regional smelters, such as Aluminium Bahrain (Alba) and Qatalum, has already dropped due to power instability and maritime bottlenecks. This region provides nearly 10% of the world's refined aluminum, including 25% of Japan's and 14% of Europe's imports.

Faced with dwindling stocks, some factories are increasing their use of recycled scrap metal to maintain operations. However, severe shortages of specialized alloys for wheels and engine blocks continue.

With LME aluminum prices jumping by 12% recently, some market participants warn that a continued blockade could force significant vehicle production cuts by mid-year.