MARKET STRUCTURE · COMPETITIVE · MIDDLE EAST
Hindalco halts extruded aluminium production
Change
Hindalco Industries halted output of extruded aluminium products and declared force majeure to all extruded‑aluminium customers on March 11, citing a gas shortage from Middle East supply disruptions.
Why it matters
Hindalco stopped production of extruded aluminium and issued a force majeure notice to all extruded‑aluminium customers on March 11. The company attributed the stoppage to a gas shortage following supply disruptions in the Middle East linked to the U.S.-Israeli war on Iran. The Indian government cut industrial gas supplies to prioritize household cooking gas amid a national gas crisis. Hindalco stated it is taking steps to mitigate the force majeure event while its primary aluminium smelters remain operational.
Implications
- • Downstream manufacturers will face constrained availability of extruded‑aluminium products needed for construction, electric vehicles, electronics and solar panels.
- • Existing contracts for extruded‑aluminium deliveries are affected by the company's force majeure declaration.
- • Primary aluminium output from Hindalco's smelters continues while downstream extruded‑product availability is interrupted.
Who is affected
- • Contract buyers of extruded aluminium
- • Construction manufacturers
- • Electric‑vehicle manufacturers
- • Electronics and solar‑panel manufacturers
Source
Topics
Business & Markets Supply Chain & Logistics Manufacturing Energy & Power Oil & Gas