Shares of NALCO, Hindalco, and Vedanta surged nearly 9% on 18th November after China decided last week to reduce or cancel export tax rebates for select aluminium and copper products.

China is a major exporter of semi-finished aluminium products, and any reduction in its exports could tighten global supply, potentially increasing prices. This is because China is the world’s largest producer of both aluminium and alumina.

The potential tightening of aluminium supply globally could benefit Indian producers like NALCO, Hindalco, and Vedanta, as they may face less competition from Chinese exports.

Historically, China’s aluminium industry has been key in exporting semi-finished products, which are either used in value-added manufacturing or re-melted into basic forms.

According to a note from Shanghai Metal Market, China’s recent decision to reduce or cancel certain export rebates may temporarily limit the export of some aluminium products.

In 2024, Hindalco has increased by nearly 8.5%, NALCO has delivered remarkable returns of almost 81%, and Vedanta has also provided impressive returns of 77%.

At 12:47 PM, NALCO was up 12.04% at Rs 246.34, Vedanta was up 5.47% at Rs 457.10, and Hindalco was up 5.43% at Rs 661.40 on NSE.

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