As a sudden shift in policy, China has announced the withdrawal of its 13% export tax rebate on aluminium and copper products, effective December 1, 2024. This decision is poised to reshape the global metal market dynamics.

The move comes amid escalating trade tensions and follows China’s dominant position in global aluminium exports, which represented 15-16% of the country’s total production in 2023. The announcement has already triggered a substantial 8.5% surge in LME aluminium prices, signalling a strong market response.

For India’s metal sector, this development presents a strategic advantage, potentially boosting domestic manufacturers competitiveness in the international market. Industry analysts expect this policy change to support sustained aluminium price increases and strengthen Indian companies market positions starting in December.