over 2 years ago • 1 min
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.
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