Business Maverick: Aluminum Surges as Guinea Coup Attempt Fuels Supply Concerns

Business Maverick: Aluminum Surges as Guinea Coup Attempt Fuels Supply Concerns

Guinea coup

Aluminum extended its surge as political unrest in Guinea fueled concerns over supply of the raw material needed to make the metal.

A unit of the military seized power and suspended the constitution, with head of special forces, Colonel Mamady Doumbouya, urging the armed forces to back him in an announcement on state television on Sunday. The African nation is a major producer of bauxite, and accounts for more than half of China’s imports of the commodity.

Read more: Guinea Coup Leader Asks for Army Backing After Seizing Power

Aluminum has climbed about 40% this year in London as massive global stimulus measures stoked demand just as Chinese smelters struggled to maintain output during a seasonal power crunch and Beijing sought to rein in the country’s carbon emissions.

Prices on the London Metal Exchange rose as much as 1.8% to $2,775.50 a ton, the highest since May 2011, before trading at $2,749. In China, futures jumped as much as 3.4% to the highest since 2006. Chinese aluminum stocks also rallied, with Aluminum Corp. of China shares up as much as 10% in Hong Kong.


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