Daily Management Review

Aluminum rises to 10-year high amid a coup d'état in Guinea


The price of aluminum rose to a 10-year high amid a coup in Guinea. The country is one of the world's largest suppliers of bauxite, a raw material for aluminum production.

oublic domain pictures
oublic domain pictures
The aluminum price at the London Metal Exchange rose to a maximum for the last 10 years, reports Bloomberg. 

China-traded aluminum futures contracts gained 3.4 percent over the day, rising to their highest level since 2006, the agency reports. The rise later corrected to 2.2 percent.

Aluminum, as Bloomberg notes, is getting more expensive amid a coup in Guinea, which is one of the world's biggest suppliers of bauxite. This raw material is used to produce aluminum. Guinea's special forces, led by Colonel Mamady Dumbuya, announced the capture of President Alpha Condé on Sept. 5, Reuters reported. In a video message shown on state television channels, Dumbuya announced the dissolution of the government, suspension of the constitution, and closure of the borders. 

"Investors are very concerned, given that China buys most of its bauxite from Guinea," chief aluminum analyst at Beijing Antaike Information Development, said in a conversation with the agency. However, so far there have been no reports of disruptions in metal production, the expert said.

source: bloomberg.com