Norsk Hydro Hit by Second Aluminum Supply Crisis on Qatalum Dispute

Aluminum  |  2026-06-15 07:39:00   |   By

The first force majeure was declared in March when gas supplies to Qatalum’s operations in Qatar were impacted by regional conflict-related disruptions.

Summary
  • Second Force Majeure Declared - Norsk Hydro has declared a second force majeure on aluminum sales following Qatalum’s termination of a long-standing marketing and sales agreement.
  • Supply Chain Concerns Intensify - The dispute adds to existing supply uncertainties caused by Middle East disruptions that previously reduced Qatalum’s production capacity.
  • Partnership Dispute Escalates - Hydro disputes Qatalum’s right to terminate the agreement, raising questions about the future of their joint venture and customer supply commitments.

SEATTLE (Scrap Monster): Norwegian aluminum producer Norsk Hydro has declared a second force majeure on aluminum sales. This follows the termination of a long-standing marketing agreement by its joint venture partner, Qatalum.

Market participants raised concerns over the company’s ability to meet supply obligations amid disruptions in the Middle East region.

ALSO READ:

Norsk Hydro Inks Long-Term Energy Contract for Aluminum Production

PyroGenesis Signs $2.4 Million Contract with Norsk Hydro ASA

The first force majeure was declared in March when gas supplies to Qatalum’s operations in Qatar were impacted by regional conflict-related disruptions. Later, it secured sufficient gas to restore production to approximately 60% of its capacity. Hydro confirmed that the original force majeure remains in effect.

According to Hydro, Qatalum has terminated the agreement under which Hydro marketed and sold the smelter’s aluminum output. Furthermore, Qatalum has indicated its unwillingness to deliver metal under the existing arrangements.

The dispute has already raised concerns about the future commercial relationship between the joint venture partners. In addition, it has added to uncertainties in connection with global aluminum supply chains. Meanwhile, Hydro has already disputed the validity of the termination.

Qatalum, with an annual production capacity of 648,000 tonnes, is jointly owned by Norsk Hydro and Qatar Aluminum Manufacturing Co..