Aluminum Prices Reached a 10 Year High

Aluminum prices reached a 10 year high. Aluminum prices soared after the coup in Guinea.

Aluminum prices peaked in London as the coup in Guinea created uncertainty over supply and increased global demand. The news of the coup from the West African country Guinea over the weekend made it inevitable for aluminum prices to rise to the highest level since 2011. The turmoil in Guinea, the world's second largest bauxite producer, also affected aluminum prices, as the raw material from which 90 percent of aluminum production is provided is bauxite. While the military junta in Guinea has encouraged companies to continue their mining operations, limiting the rise in prices for now, aluminum prices will have recorded their highest level since the financial crisis if they exceed their 2011 peak. While Guinea has 7.4 billion tons of bauxite reserves, China makes 55 percent of its bauxite imports from Guinea. Aluminum futures in Shanghai are at their highest level since 2006, with aluminum prices rising 1.5 percent to $2,798 per ton on the London Metal Exchange.