Aluminum record rose against the backdrop of supplying and growing demand, Bloomberg reports. On the London Exchange, the metal rose by 2.6 percent to 3 thousand dollars per ton – this is the highest day level since 2008. In China, the price increased by 5.4 percent and reached 23,790 yuan (about 3685 dollars), which is a record indicator since 2006.
In early September, the cost of the most popular metal took off by 15 percent. China reduces production to achieve goals to reduce carbon dioxide emissions, and the coup in Guinea caused concerns that aluminum supplies will be at risk. European companies also face elevated spending on the release, since carbon emissions rates are growing, and electricity that is required in large quantities for the production of aluminum, more expensive.
Shares of the largest Metallurgical plant of China Aluminium Corp. Of China on Monday rose 8.1 percent in Hong Kong. The shares of the Russian company “RUSAL” on September 6, too, jumped to a record level since 2012, reaching 66.75 rubles. At the time of writing news, the manufacturer’s securities traded at a price of 74.37 rubles, and their maximum cost per day amounted to 75 rubles.
The Harbor Aluminium Summit summit members in Chicago believe that supply interruptions will interfere with the industry most of 2022, and some market participants predict that the problems will continue in the next five years. The same opinion adheres to the Russian billionaire and the shareholder of the Metallurgical Company “RUSAL” Oleg Deripaska. He stated that the coup in Guinea could seriously “shake” the aluminum market.
“In China and in most parts of the European Union, risks for aluminum supplies are growing,” said analysts from Goldman Sachs. The bank does not believe that the coup in Guinea will significantly affect the supply, but regional tensions can create additional logistics problems, which will lead to a further increase in the cost of metal.