Nalco, Hindalco, Vedanta shares rise up to 9% as China cancels export tax rebates for aluminium

Nalco, Hindalco, Vedanta shares rose up to 9 percent on November 18 as China last week decided to reduce or cancel export tax rebates for select products made of aluminium and copper.

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Nalco, Hindalco, Vedanta shares rose up to 9 percent on November 18 as China last week decided to reduce or cancel export tax rebates for select products made of aluminium and copper.

China’s exports large amounts of aluminium as semi-finished product and any reduction in Chinese exports could tighten the global supply of these products and may increase prices, since China is the world's largest producer of aluminium as well as alumina.

At the same time, any tightening of the supply of aluminium and aluminium products globally could potentially benefit Indian producers like Nalco, Hindalco and Vedanta Limited.

National Aluminium Company Limited shares gained over 9 percent on Monday. At around 10.25 am, the shares of the company were trading 9.30 percent higher to quote at Rs 240.32 per share on the NSE. The stock has been gaining for the last two trading sessions.

The counter had opened with a gain of 2.79 percent in today's trading session.

The shares of the Hindalco Industries Ltd too were seen in up trend. The stock touched an intraday high of Rs 656 per share, rising 4.57 percent from its previous close. The scrip opened with a gain of 2.32 percent.

Vedanta shares were too seen in demand as investors jumped to invest in the stock. The counter jumped nearly 4 percent in Monday's trade. At around 10.30, the stock was trading at Rs 450.10 per share on the NSE, up 3.85 percent.

Historically, China's aluminium industry has played a significant role in exporting semi-finished products. These are either utilised in value-added manufacturing processes or re-melted into basic commodity-grade forms.

The latest decision by China may temporarily limit the export of certain products, according to a note by Shanghai Metal Market on Friday.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.