Aluminum Producers’ Shares Rally As Guinea Coup Crimps Raw Material Supply

Aluminum Producers’ Shares Rally As Guinea Coup Crimps Raw Material Supply
Andrew Rummer

over 2 years ago1 min

Shares in aluminum producers climbed around the world as a coup in Guinea fueled concern over the supply of bauxite and pushed the metal’s price to a 10-year high. 

The price of aluminum on the London Metal Exchange rose as much as 1.8% to the highest since May 2011 on Monday. The metal – used in everything from soda cans to cars – had already climbed nearly 40% this year as resurging economic activity boosts demand and supply from China shrinks amid a push to cut carbon dioxide emissions. 

China is the world’s biggest aluminum producer and gets 55% of its imports of bauxite – a rock heavy with aluminum ores – from Guinea. A division of the military seized power in the African country on Sunday and suspended the constitution, with the unrest threatening to delay future bauxite deliveries.

Shares of China’s Chalco and Russia’s Rusal added more than 5% in Hong Kong on Tuesday. Yunnan Aluminium climbed 4.2%, Australia’s Alumina rose 3.3%, and Norway’s Norsk Hydro increased 3.6%. The gains extend 2021's stellar run for stocks in the sector (shown in the chart above). 

Shares in US-listed aluminum producers like Alcoa and Century Aluminum are likely to get a boost on Tuesday when markets there reopen after the Labor Day holiday.

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG