Debasis Mohapatra
Bengaluru, 4 March 2026
The war in the Middle East region has put the focus on aluminium, which is considered as the ‘metal of the future’. India is a large producer of alumnium products with producers like Vedanta, Nalco and Hindalco among others. As commodity pricing is a play of demand & supply, supply disruption in the Middle East region is going to affect global pricing in the near term.
Which factors are likely to affect aluminium market?
- Middle East war is one of the primary reasons for price fluctuations at this point of time. The region produces around 8% of the total global aluminium production. As Iran continues to strike industrial zones of Gulf countries, supply disruption is likely. Moreover, ship movement through the Straight of Hormuz remains very restricted. This may lead to availability crunch if the war continues. Bahrain, Oman, Qatar, Saudi Arabia, UAE are the major producers in this region.
2. Qatalum, a key producer of aluminium in Qatar, began a controlled shutdown of its plant (approx. 0.65 million tonnes annual capacity), raising fears of severe supply tightness. Qatar is being attacked with drones and missles by Iran as the war between Isarel, US & Iran is raging in the last 4 days.
Stock price movement:
Indian aluminium producers are feeling the impact of Middle East war on Wednesday (March 4, 2026). Shares of Vedanta were trading 3.85% lower on the NSE at Rs 695.50 apiece, while NALCO was trading 0.23% up at Rs 363.70 per share at 12.30 PM IST. Hindalco Industries was down nearly 2.6% to trade at Rs 915.60 per share.
