Metal tariffs won’t majorly impact Hindalco, Nalco's global operations: Parthiv Jhonsa

«What we have seen in the past is whenever there is a tariff or anything like that, the metal prices usually go up in the near term and that is actually positive for companies like Hindalco,» says Parthiv Jhonsa, Anand Rathi Institutional Equities.

I want to first really talk about what is happening in the world. We have been speaking with the managements of Hindalco, Nalco, etc. The managements firmly believe that these tariffs will not really impact them. Do you think that is the same?
Parthiv Jhonsa: We need to understand that over especially last two months, the entire metal has seen a lot of to-and-fros internationally. Yes, companies like Hindalco where Novelis has a huge presence in USA, something like these tariffs would actually not make a huge difference or a huge dent to them because they have a good presence in USA.

And also, they source a lot of material within the country at the end of the day. So, what we have seen in the past is whenever there is a tariff or anything like that, the metal prices usually go up in the near term and that is actually positive for companies like Hindalco.


But give us a sense that do you believe that the metal prices, how will China dominate that because in the latest development from China, China has asked the select steel mills to actually cut production. How do you read into this development and globally how do you see the steel and the aluminium prices moving because what Trump will do next, nobody knows. But definitely the tariffs on steel and aluminium are expected