Vedanta shares climbed 3% on Monday, trading at ₹445.30 on the NSE as of 9:24 am, as the market reacted positively to China’s decision to withdraw export tax rebates on aluminium and copper products, effective December 1, 2024.
Key Developments:
- China’s Announcement: The Chinese Ministry of Finance announced the removal of export tax rebates on aluminium and copper products, leading to an 8% surge in aluminium prices to $2,730 per tonne—the highest in over a year.
- Global Impact: The decision is expected to reduce Chinese aluminium exports, potentially tightening global supply and increasing aluminium prices, which benefits producers outside China.
- Indian Context: Indian aluminium players, including Vedanta, stand to gain from higher global prices and reduced competition from Chinese exporters.
Market Performance:
Vedanta’s shares are up as investors anticipate improved margins for its aluminium business, supported by the global price increase and tightened supply.
This policy shift could also encourage domestic production and consumption within China, further reducing export competition and supporting aluminium producers globally.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always consult a financial advisor before making investment decisions.
