Vedanta, Hindalco, NALCO: Aluminium stocks in focus on March 4 amid US-Iran conflict; here is why

A full restart could take 6–12 months or more, and the company has issued a force majeure notice to customers. This development has direct implications for global supply levels.

As a result of the Qatalum disruption, aluminium supply expectations have tightened globally, helping push up prices on the London Metal Exchange.

Qatalum is a 50/50 joint venture owned by Hydro and Qatar Aluminium Manufacturing Company Q.P.S.C. (QAMCO). The plant has a nameplate capacity of primary aluminium of 636,000 metric tonnes and a casthouse capacity of 664,000 metric tonnes. Qatalum is fully integrated with a smelter, casthouse, carbon plant, and dedicated gas-fired power plant.

Attack on Qatar

On March 3, an Iranian ballistic missile hit the United States' military base at Al-Udeid, Qatar's Defence Ministry said, as Tehran struck targets across the Gulf in retaliation for U.S.-Israeli attacks.

The ministry said Qatar was targeted by two missiles, adding: "Air defence systems successfully intercepted one of the missiles, while the second missile struck Al-Udeid Qatari Base without causing any casualties."

Aluminium market in India

India is one of the key players in the global aluminium industry. Backed by abundant natural resources and a strong push toward industrialisation, the country has witnessed significant growth in both aluminium production and consumption in recent years.

Aluminium, known for its lightweight, corrosion resistance, and recyclability, is often referred to as the "metal of the future".

Its applications span across industries such as automotive, construction, packaging, and electrical.

Globally, aluminium demand is being propelled by the shift toward sustainability and lightweight manufacturing solutions. As the world’s second-largest aluminium producer, India plays a crucial role in meeting this growing demand, say reports.

How shares are faring

In the opening deals, shares of Vedanta were trading over 1% lower on the NSE at ₹715.95 apiece, and NALCO was up nearly 1.5%, while Hindalco Industries was down nearly 1%.