Guinea’s aluminium ore bauxite prices for China delivery had spiked to their highest level in more than 18 months on Monday, as buyers remained utterly fretted about growing likelihoods of a supply chain chaos in a near term following a military coup in the Western African nation over the weekend, however, no bauxite mines had reported any kind of disruptions thus far.
As a matter of fact, an army unit had ousted Guinea President Alpha Conde on Sunday, leading to a blistering rally in aluminium prices apart from bauxites while stepping up the shares’ prices of heavy-weight aluminium producers such as Norsk Hydro alongside Rusal among others.
Guinean bauxite for China delivery was last traded at $50.50 per ton, about 1.0 per cent up from Friday’s closure and the strongest since the 16th of March. An escalated civil war in Guinea, the largest bauxite supplier for China and the world’s second-biggest producer of bauxite that could be refined into alumina to produce aluminium and related products, had soared bauxite prices as much as 16 per cent so far this year.
Guinea’s Bauxite prices hit 1-1/2-year peak
Nevertheless, latest geopolitical unrests in the West African country have had little impacts on bauxite operations which has long been a key to FX reserves for the beleaguered economy, as the military coup leader Mamady Doumbouya said in a statement on Monday that a curfew inclined on bauxite mines had been withdrawn.
Meanwhile, adding that the military coup would unlikely to temper bauxite outputs in Guinea, an economy having been hit with civil war for years, a bauxite industry specialist Bob Adam said, “It is highly unlikely that the coup will have any major short-term impact on exports, which are always at the lowest part of the cycle in September with stockpiles depleted as the rainy season comes to an end.
Any incoming government will want to make sure that it doesn't jeopardise future earnings and investment”. Guinea had produced a jawdropping 88 million tons of bauxite last year.