01 MARCH 2016The Economic Times
Budget 2016 impact: India aluminium stocks gain on 2.5% import duty hike
Edited by : AL CIRCLE
2 min read
Shares of Vedanta Ltd. and National Aluminium Company gained on Monday after Finance Minister Arun Jaitley increased imports duty on aluminium to 7.5 per cent from 5 per cent effective April 1, in a bid to save the industry from imports that have captured more than half the domestic market.
Aluminium industry in India is facing tough competition from cheap imports into the country while global aluminium prices have fallen 44 per cent to $1500 a tonne in January this year from $2662 per tonne in April 2011.
Plant shutdown and job cuts are underway as capacity utilisation of domestic aluminium industry has fallen drastically in the last one and a half years as global prices declined.
CEOs of aluminium producing companies like Vedanta and Hindalco had sought an urgent intervention from Finance minister demanding a doubling of import duty to 10 per cent at least.
The Economic Survey presented last week had said raising tariffs to check imports of aluminium will erode the competiveness of aluminium consuming sectors like power, transport and construction.
Vedanta shares rose 4 per cent at INR 74.50 apiece while NALCO shares were up 1.50 per cent at INR 33.75 on Monday afternoon on BSE. Hindalco shares, however, were trading flat at INR 69.25.
Aluminium industry in India is facing tough competition from cheap imports into the country while global aluminium prices have fallen 44 per cent to $1500 a tonne in January this year from $2662 per tonne in April 2011.
Plant shutdown and job cuts are underway as capacity utilisation of domestic aluminium industry has fallen drastically in the last one and a half years as global prices declined.
CEOs of aluminium producing companies like Vedanta and Hindalco had sought an urgent intervention from Finance minister demanding a doubling of import duty to 10 per cent at least.
The Economic Survey presented last week had said raising tariffs to check imports of aluminium will erode the competiveness of aluminium consuming sectors like power, transport and construction.
Vedanta shares rose 4 per cent at INR 74.50 apiece while NALCO shares were up 1.50 per cent at INR 33.75 on Monday afternoon on BSE. Hindalco shares, however, were trading flat at INR 69.25.
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