China Alters Export Rebates, Impacts Global Markets

China's decision to cancel export tax rebates for aluminum and copper, effective from December 1, has led to a surge in industrial metal prices and may benefit companies like India's Hindalco Industries by reducing competition from cheap Chinese imports. This move is expected to ease pressure on Indian aluminum producers, prompting India's trade ministry to consider anti-dumping duties. In addition to aluminum and copper, China will also reduce tax rebates for some refined oil products and photovoltaic products. The changes align with China's broader economic strategies, including urging Canada to remove tariffs on Chinese goods. These adjustments come amid economic growth concerns, with Citigroup revising China's growth forecast to 5% for 2024 and highlighting tariff issues as a risk.