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Hindalco Industries Ltd. hopes to benefit from China’s move to cancel tax rebates on exports of aluminum and copper, Managing Director Satish Pai said.
The Indian metals giant expects cheap imports from China to fall, easing pressure on domestic producers. Aluminum makers in the South Asian nation have been hit by increased purchases of foil from China, pushing India’s trade ministry to propose anti-dumping duties on imports that have captured 30% of the local market, according to the Indian Express newspaper.
The situation could have worsened if US President-elect Donald Trump raises tariffs on Chinese goods to boost US manufacturing and jobs, Pai told Bloomberg TV in an interview.
Shares of aluminum companies in China fell, while those in Australia, Japan and India tracked the metal higher. Hindalco shares advanced as much as 5.7% Monday.
Pai said that the company was in the process of investing $4 billion to $5 billion to boost capacity in aluminum and copper, riding on India’s robust demand for metals from industries like packaging, construction and electricity. Those investments follow India’s strong demand for the metals, he said
China’s move shows that its domestic demand is strong, and that’s good for global metal prices, Pai said. Prices of aluminum are presently volatile and are being guided by geopolitics and tariffs rather than demand and supply, he added.
The new US administration will also be beneficial for Hindalco’s US unit Novelis Inc., the world’s largest recycler of aluminum, as it produces metal in the US, Pai said.
