China’s decision to cancel this tax rebate, which has long supported its export-driven aluminum industry, sparked a sharp rally in aluminum prices on the London Metal Exchange on Friday. The move is expected to curb the excessive supply of Chinese aluminum abroad.

The NALCO (National Aluminium Company), Hindalco, and Vedanta shares zoomed almost 10 per cent on the NSE (National Stock Exchange) after China rolled back a 13 per cent tax rebate given on copper and aluminium products.

Shares of National Aluminium company limited (NALCO) gained above 9 per cent on November 18 as the consolidated net profit quintupled to ₹1,062 crore for the second quarter ended on September 30, 2024,

The shares of Indian metal giants like National Aluminium Company (NALCO), Hindalco Industries, and Vedanta experienced significant gains on Monday, November 18, driven by a sharp rise in aluminium prices following China’s proposed removal of export tax rebates for commodities such as copper and aluminium.

Any tightening of the supply of aluminium and aluminium products globally are expected to benefit Indian producers.

Chinese Aluminium exports represent 15% to 16% of the country's total production and 20% to 22% of production outside China.