Aluminum futures prices soared to their highest in more than a decade after a coup in Guinea fueled concerns over Bauxite feedstock supplies. China gets half of it’s supplies from Guinea and is already struggling with output.
Soft demand for aluminum and cost deflation has seen LME futures prices in narrow range with low volatility. China is the world’s top aluminium producer and continues to defy low prices as falling alumina costs boost margins.
The Brazilian state of Para lifted the production embargo on the Norsk Hydro ASA’s Alunorte alumina refinery. The Norwegian aluminum maker’s ADR $NHYDY rose about 1.5% on the news.
The new London Metal Exchange alumina contract will be settled in part by using data from the Fastmarkets MB index, with shared weight given to the CRU’s Alumina price index.