- The Military coup in Guinea has sent the global aluminium prices spiralling to a 10 year high over fears that the political instability in the West African nation, a major producer of Bauxite could hit the supply of raw bauxite, which is needed to produce Aluminium.
- Aluminium prices in the London Metal Exchange rose by 1.8% on Sep 6th to $2775.50 per ton, the highest price recorded since May 2011.
- In China, the price recorded was the highest since 2006
The Military coup in Guinea has sent the global aluminium prices spiralling to a 10 year high over fears that the political instability in the West African nation, a major producer of Bauxite could hit the supply of raw bauxite, which is needed to produce Aluminium.
Aluminium prices in the London Metal Exchange rose by 1.8% on Sep 6th to $2775.50 per ton, the highest price recorded since May 2011. In China, the price recorded was the highest since 2006 when aluminium futures soared by 3.5% to around $3,400 (CNY 21,970) and then levelled off at around 2.3%.
Already aluminium prices have climbed after the Pandemic induced slow down. It saw about 40% surges this year in London due to a surge in demand in China and a resurgence of global economic activity. A seasonal power crunch and Beijing’s effort to control the country’s carbon emissions drove the demand. Guinea accounts for more than half of all of the Chinese imports of Bauxite. According to the chief of Aluminum Corp. of China, the biggest producer of Aluminium that has a bauxite project in Guinea, all of its operations are normal and it has ample bauxite inventories at its plants in China.
Aluminium, a metal that is commonly used to make almost everything from car parts to home appliances, is set to benefit from its use in electric vehicles and renewable energy. The rally is a windfall for producers who faced losses due to the Pandemic and weak prices for years.
