Norsk Hydro Hit by Second Aluminum Supply Crisis on Qatalum Dispute
Aluminum | 2026-06-15 07:39:00
The first force majeure was declared in March when gas supplies to Qatalum’s operations in Qatar were impacted by regional conflict-related disruptions.
By Paul Ploumis
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.
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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..
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What is likely to be the biggest consequence of the Hydro-Qatalum dispute?
Frequently Asked Questions
- Why did Norsk Hydro declare a second force majeure?
Hydro declared the force majeure after Qatalum terminated its marketing agreement and indicated it would not deliver aluminum under existing arrangements.
- What was the reason for the first force majeure?
The first force majeure was declared in March after regional conflict-related disruptions affected gas supplies to Qatalum's operations in Qatar.
- Has Qatalum resumed production?
Yes. The smelter secured enough gas to restore production to about 60% of its capacity, although the original force majeure remains in effect.
