NALCO shares now up 12% in three session as US-Iran war rages on; Here’s why

Shares of National Aluminium Company Ltd. (NALCO) surged as much as 8% on Thursday, March 5, extending their gains for the third day in a row, during which the stock as gained over 12%.As of 11 AM on Thursday, over 2 crore shares of the company have already changed hands compared to a 20-day average of 30 lakh shares. 43% of these shares traded so far have been marked for delivery, according to NSE data.

The US-Iran war has resulted in Qatalum smelter initiating a controlled shutdown. The 650 KTPA Qatalum smelter is a Joint Venture between Qatar Energy and Norsk Hydro. Qatar has already invoked Force Majeure on the production and supply of gas due to the ongoing war.
Aluminium prices in the global markets have also surged to the highest level since 2022 after Alumnium Bahrain BSC ended up invoking the Force Majeure clauses in its supply agreements and suspended the delivery of the metal to come customers.
Also known as Alba, the company is a major Aluminium supplier to West Asia, and safety concerns surrounding the Strait of Hormuz has resulted in outbound shipments to customers getting impacted.Alba has also clarified that the force majeure declaration is only due to safety concerns and not due to the damage or disruption to any of its facilities.

Together, the GCC countries produced 6.5 million tonnes of Aluminium in 2025, which is 8% of the global primary production during the full year.

NALCO appears to be well placed in such a scenario as captive coal mines supply nearly 57% of the coal requirements. The company also benefits from the higher Aluminium prices in the global market.

Shares of NALCO are trading 6.7% higher on Thursday at ₹398.6. The stock is the top gainer on the Nifty Metal index.