Aluminum continued to record price increases to the highest level since 2008 due to supply concerns in China and Guinea which have increased market pressures.
The coup situation that erupted in Africa raises concerns over possible disruptions in the supply of key materials for aluminum production which represents almost 1/4 of the world’s bauxite.
Meanwhile, Guinea’s new government has ordered the mining companies to remain operational and assured them that the agreement signed will be fulfilled.
Concerns over the bauxite issue were also sparked by aluminum supply constraints in China influenced by power -saving campaigns and stopping pollution from the energy incentive industry.
However, rising inflation in Chinese producer prices reaching a 13 -year high has prompted efforts to intensify further to curb raw material prices.
To date, aluminum has jumped 1.6% to $ 2,837.50 a tonne on the London Metal Exchange and it is also the highest level since 2008.
But around 12.48 noon Shanghai time, the price of aluminum traded at $ 2,829, which rose 2.1% to its highest level since 2006.
The reopening of economic activity across the country as well as soaring consumer demand have almost pushed aluminum to double over since last year.
