- Qatalum terminates aluminium marketing agreement
- Supply uncertainty persists despite partial restart
Norsk Hydro has declared a second force majeure on aluminium sales from its 50:50 Qatalum joint venture in Qatar after the smelter terminated its marketing and sales agreement with the Norwegian producer.
The development follows an earlier force majeure declared in March 2026, when the Middle East conflict disrupted natural gas supplies to Qatalum’s 648,000 TPA aluminium smelter, forcing the operation to begin a shutdown. Although gas supplies have since improved and the smelter is currently operating at around 60% of capacity, Hydro confirmed that the original force majeure remains in effect.
According to Hydro, Qatalum has notified the company that it has terminated the agreement under which Hydro markets and sells Qatalum metal. Hydro has disputed the termination and stated that Qatalum has informed it that metal deliveries under the existing agreements will cease.
The company warned customers that it may be unable to fulfil delivery commitments even if the geopolitical situation in the Middle East improves. Hydro added that it is currently unable to estimate the duration or full impact of the disruption but will continue working to minimise supply interruptions.
The latest development adds further uncertainty to global aluminium supply chains, particularly as market participants remain focused on Middle East geopolitical risks and the availability of primary aluminium units.
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