NALCO, Hindalco, Vedanta experience share surges following China’s decision to revoke export tax rebates: Know why?
China’s decision to revoke tax rebates on aluminium has caused two opposite reactions in the global market. On the one hand, it has brought a frown to global downstream producers and end-user manufacturers in anticipation of a limited supply of metal and higher prices; on the other, it has brought hope for improved margins among primary aluminium producers due to global price hikes.
On this note, some of the primary aluminium giants in India have experienced a notable surge in their shares. Companies like NALCO, Hindalco, and Vedanta reported that their shares raised as much as 7 per cent on Monday, November 18, following China’s announcement of its decision on Friday, November 15. Even a Malaysia-based aluminium company, Press Metal, gained 7.5 per cent to RM4.73, marking its highest gain in a single day since April 4, 2024, and giving the company a market capitalisation of RM39 billion.
China would earlier give a tax rebate of 13 per cent on aluminium and copper exports, which the country has now decided to revoke with effect from December 1, 2024. This decision is seen as a strategic move in the background of anticipated trade tensions due to the win of Donald Trump as the 47th President of the United States.
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