Shares of aluminium manufacturing companies Hindalco Industries Ltd. and National Aluminium Co. Ltd. (Nalco) surged up to 4 percent in on Friday after China announced that it would raise export tariffs on aluminium and aluminium alloys.
The Chinese State Council on Thursday said that it would raise export tariffs on aluminium and aluminium alloys from 15 percent to 30 percent with effect from January 1, 2023 in order to expand domestic demand.
Shares of US-based Alcoa Corp. also surged 6 percent after China’s announcement on tariffs. Alcoa is the world’s eighth-largest producer of aluminium.
A hike in export tariffs for China’s aluminium is a positive for aluminium manufacturers from other countries as it would raise demand for their products in the global market due to pricing advantage.
Hindalco is one of India’s biggest aluminium manufacturing companies and the world’s largest flat-rolled products player. It is also a recycler of aluminium, while state-owned Nalco is engaged in the business of manufacturing and selling of alumina and aluminium.
Starting January 1, 2023, China will implement provisional import tax rates for 1,020 commodities (excluding commodities with tariff-rate quotas).
Provisional import tax rates for seven coal products will remain in place until March 31, 2023. From April 1, 2023, the implementation of the most-favoured-nation tax rates will be resumed.
