Metal stocks rallied up to 7% on Thursday, March 5, as rising tensions between the US and Iran rattled markets. National Aluminium Company(NALCO), Hindalco Industries, and Vedanta , were among the top gainers in the metal pack, led by a rise in aluminium prices. NMDC, Tata Steel, Hindustan Copper, Steel Authority of India (SAIL), and Welspun Corp also gained between 2.5-3.5% each.

Why Did Metal Stocks Rise Today?

Supply-side risks drove aluminium prices higher on Thursday, as regional conflict in the Middle East began to interfere with exports from key production hubs.

Aluminium Bahrain (Alba), one of the world’s largest aluminium smelters declared force majeure on Wednesday, suspending shipments as marine traffic through the Strait of Hormuz slowed dramatically. This is a vital trade route and shipping has been severely disrupted, leading to heightened fears of supply shortages across global metals markets.

Concerns about aluminium supply had already been building before Alba’s announcement. Earlier, Norsk Hydro, another aluminium producer, revealed it had initiated a controlled shutdown of its aluminium joint venture in Qatar and also declared force majeure, further tightening supply expectations.

With two major producers facing operational disruptions, traders are increasingly factoring in potential shortages into prices.

GCC nations together produced roughly 6.5 million tonnes of aluminium in 2025, accounting for about 8% of global primary aluminium production. Qatalum, a joint venture between Qatar Energy and Norsk Hydro, has the capacity to produce around 0.65 million tonnes of aluminium annually.