India’s Hindalco Industries said China’s move to cancel export tax rebates on aluminum would benefit the company.

The development is likely to curtail China's aluminium exports, thereby tightening global supply and driving up prices, ICICI Securities said

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.

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.