China has announced a reduction in export tax rebates for select aluminium, copper products, and other items, effective December 1. The rebate cuts, which drop from 13% to 9% for products such as aluminium pipes, plates, sheets, batteries, and photovoltaics, aim to address trade tensions and align with domestic priorities.
This decision has pushed aluminium futures prices higher globally, with ripple effects in India. Shares of major Indian metal producers like Hindalco, Nalco, and Vedanta are tracking these developments closely, as tighter global supply could create an opportunity for Indian players.
China, the world’s largest aluminium producer, exported 5.2 million tonnes of semi-finished aluminum products in 2023-accounting for about 7% of the world’s total aluminium supply. Reductions to the rebates will likely cut exports in the near term, further tightening supply and helping to lift prices in overseas markets.
According to ING Bank analyst Ewa Manthey, this might also be a strategic response to global trade tensions. The rebate cut extends as well to non-metallic minerals, modified plant oils, and refined oil products, further tightening up international commodity markets.
Indian metal producers stand a good chance to benefit from this reduced competition in world markets, thus providing them with a potential thrust to their revenues for the near term.
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Source: Moneycontrol
News Desk
