Hindalco shares rose over 3% on Monday, trading at ₹646.85 on the NSE as of 9:25 am, following China’s announcement to scrap export tax rebates on aluminium and copper products starting December 1, 2024.
Key Highlights:
- China’s Policy Change: The removal of export tax rebates by the Chinese Ministry of Finance has led to an 8% spike in aluminium prices, now at $2,730 per tonne—the highest level in over a year.
- Global Supply Impact: The move is expected to tighten global aluminium supply, reduce Chinese exports, and increase aluminium prices, benefiting producers outside China.
- Positive for Indian Aluminium Players: The reduced competition from Chinese exports positions Indian aluminium companies like Hindalco to gain from rising global prices and improved margins.
Market Performance:
Hindalco’s shares surged as investors reacted positively to the potential for higher global aluminium prices, which could boost the company’s profitability. The policy shift aligns with global supply constraints and increased demand, creating favorable conditions for non-Chinese producers.
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.
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