Shares of National Aluminium Company (NALCO) and Hindalco Industries surged sharply on Wednesday, March 5as global aluminium prices jumped following supply concerns triggered by the shutdown of a major Middle East smelter.
NALCO shares were trading around Rs 401.40, up about 7.47%while Hindalco Industries rose roughly 5.77% to Rs 975 during the morning session, reflecting strong investor interest in metal stocks.
Aluminium prices spike globally
The rally in aluminium-related stocks comes after the Qatalum aluminium smelter in Qatar began a controlled shutdown on March 3, 2026 due to disruptions in natural gas supply.
Qatalum, a 50:50 joint venture between QatarEnergy and Norsk Hydrohas an annual production capacity of roughly 650,000 tonnes of aluminiummaking it one of the key producers in the global supply chain.
The shutdown was triggered after QatarEnergy warned of a suspension in natural gas deliveriesreportedly linked to broader disruptions in the region following the escalating Iran–U.S.–Israel conflict and risks to energy infrastructure.
Aluminium supply concerns drive prices higher
With production expected to halt gradually through March, global aluminium markets reacted quickly.
Prices on the London Metal Exchange (LME) surged as much as 3.8% intraday to around $3,315 per tonnebefore stabilising near $3,260 per ton in subsequent trading sessions.
The supply shock comes at a time when the aluminium market was already facing a global supply deficit heading into 2026amplifying the impact of the shutdown.
Force majeure and delivery disruptions
Norsk Hydro has reportedly declared force majeure for Qatalum customerswarning buyers about potential supply disruptions.
Restarting a large smelter is a complex process, and analysts expect a full restart could take anywhere from 6 to 12 months once gas supply stabilises.
Indian aluminium stocks gain on global price surge
The sharp rise in aluminium prices has boosted sentiment around Indian producers.
Companies like NALCO and Hindalco tend to benefit when global aluminium prices rise, as higher metal prices improve realisations and earnings outlooks for producers.
As geopolitical tensions continue to affect energy supply chains in the Middle East, investors are closely tracking developments that could influence global metal supply and commodity prices.
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