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Alumina Exports Hit by West Asia Tensions
10 May
Summary
- West Asia crisis impacts 40-50% of Nalco's alumina shipments.
- Global spot alumina prices fall to USD 305-310 per tonne.
- Nalco's net profit dropped 16.6% in Q4 FY26 to Rs 1,722.44 crore.
Geopolitical tensions in West Asia have significantly impacted the alumina exports of the state-run National Aluminium Company Ltd (Nalco). This region normally accounts for 40-50% of the company's total alumina shipments. The disruptions have led to a noticeable decline in global spot alumina prices, which are now trading between USD 305-310 per tonne.
Nalco's Chairman and Managing Director confirmed that while export orders from Indonesia and other regions are present, the reduction in Middle Eastern demand has affected pricing. Smelters in West Asia are operating at reduced capacities, and their slow return to full production is expected to continue influencing spot alumina markets.
The broader aluminium value chain is feeling the effects, with oversupply driving down spot alumina prices in some areas, while refined aluminium prices have surged due to production halts and shipping delays. Nalco produced 23 lakh tonnes of alumina in 2025-26, exporting 13.08 lakh tonnes.
Reflecting these market conditions, Nalco reported a 16.6% drop in its consolidated net profit for the quarter ended March 31, 2026, amounting to Rs 1,722.44 crore. This decline occurred alongside a decrease in revenue to Rs 5,012.82 crore for the same period.
