Middle East conflict disrupts NALCO’s alumina exports, affects prices

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National Aluminium Company Limited’s (NALCO) exports 40 to 50 per cent of its produced alumina to the Middle East. According to Shri Brijendra Pratap Singh, Chairman and Managing Director, NALCO’s alumina exports to the region have been disrupted, owing to the geopolitical tensions surrounding the ongoing Middle East conflict among Iran, Israel, and the United States.

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In FY 2025-26, it produced 2.3 million tonnes of alumina, of which 1.31 million tonnes were exported. A shift in export destinations to mitigate inventory stagnation has conversely resulted in a decline in global spot alumina prices, which, at present, have been hovering between USD 305-310 per tonne.

Analysts observed that the aluminium value chain has been greatly affected by the Middle East conflict, with excess supply lowering spot alumina prices in certain markets, while refined aluminium prices climbed due to production halts and logistical disruptions.

The CMD noted, “Our alumina export to the Middle East ... a lot of around 40 per cent, 50 per cent of our export was going to the Middle East, which has been affected... Of course, that has resulted in a reduction in the spot prices.” As of May 8, alumina platts price on the London Metal Exchange remained at USD 307.15 per tonne.  

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Moreover, West Asian smelters are currently operating at a reduced capacity, including the controlled shutdown of Aluminium Bahrain’s potlines 1, 2, and 3. Compounded by geopolitical tensions such as Iranian attacks on the facilities of Alba and Emirates Global Aluminium (EGA), there is no indication of restarting full-capacity operations for the time being.

The effect of the Middle East conflict reflected on NALCO’s financial calendar. The Q4 financial results for FY 2025-26 recorded the consolidated net profit dropping 16.6 per cent Y-o-Y to INR 17.18 billion (USD 181 million) due to weaker revenue and higher expenses, while revenue declined to INR 51.03 billion (USD 537.66 million) from INR 52.67 billion (USD 553.4 million) in the previous financial year. 

Hence, NALCO stated, “production curtailment is there till [the smelters of the Middle East] reach the fullest capacity.” This would also leave a ripple effect on “the alumina pricing in the spot markets.”

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