NALCO share price surged by 9 percent in early trading session as China announced policy tightening. India’s leading aluminium producers, Nalco, Hindalco, and Vedanta, saw significant stock price gains of up to 9 percent on November 18, following China’s decision to reduce or cancel export tax rebates on select aluminium and copper products. This policy shift is expected to tighten global supplies, benefiting Indian manufacturers as aluminium prices rise. While this immediate jump in stock valuations will be welcomed by market players, we can expect a decline in the coming sessions as initial euphoria declines.

China’s Export Policy: The world’s largest aluminium producer, China, has been a key exporter of semi-finished aluminium products. Any reduction in Chinese exports can have ripple effects on global supply chains, potentially boosting aluminium prices.

Impact on Indian Producers: As supply tightens, Indian companies like Nalco, Hindalco, and Vedanta are well-positioned to capitalize on higher global demand and prices.

Nalco Leads the Rally with 9% Gains

Stock Performance: National Aluminium Company Limited (NALCO) shares soared over 9 percent in Monday’s trade, reaching Rs 240 per share on the NSE by 11:00 am. The stock has been on an upward trajectory for the past two sessions.

Trading Momentum: NALCO opened strong and gained further ground as other metal stocks surged, reflecting heightened investor interest in the sector.

Hindalco Gains Amid Optimistic Market Sentiment

Stock Highlights: Hindalco Industries Ltd. shares were in an uptrend, with the stock touching an intraday high of Rs 656, a 4.5 percent increase from its previous close. By the time of publication, the stock was up 3.8 percent.

Market Response: The strong performance signals robust investor confidence in Hindalco’s ability to leverage tighter aluminium supplies and rising global prices.

Vedanta Sees Increased Investor Demand

Share Movement: Vedanta Limited shares also attracted significant investor interest, rising nearly 4 percent in Monday’s trade. By 11:00 am, the stock was trading at Rs 450 per share, reflecting a 3.85 percent gain.

Positive Outlook: The surge indicates strong market sentiment around Vedanta’s potential to benefit from evolving global dynamics in aluminium and copper markets.

Global Aluminium Dynamics Shift with China’s Policy Changes

China’s Role in Aluminium Markets: Historically, China has played a dominant role in the export of semi-finished aluminium products. These exports are often used in value-added manufacturing or re-melted into basic commodity-grade aluminium.

Policy Implications: According to a report by Shanghai Metal Market, China’s latest decision to limit export rebates may temporarily restrict the availability of certain products, tightening global supply chains.

Conclusion

The reduction of Chinese export tax rebates on aluminium and copper products has created an advantageous scenario for Indian aluminium producers. Nalco, Hindalco, and Vedanta are poised to benefit from tightening global supplies and rising prices. With significant stock price gains already reflecting investor optimism, these companies remain strong candidates for future growth as they leverage their market positioning amid changing global trade dynamics.