According to FT sources, Guinea provides about 25% of the world’s bauxite, with the majority supplied to China and Russia. According to Bloomberg data, Guinea ranks second in the world for bauxite production in 2020. Public information shows that Guinea has the world’s largest proven bauxite reserves.
Guinea is one of the main importers of bauxite in China. From January to July this year, the cumulative import volume of domestic bauxite was 64.41 million tons, of which 35.39 million tons were imported from Guinea, accounting for about 55%. Imported from Australia 19.84 million tons, accounting for about 31%. Imported from Indonesia 8.86 million tons, accounting for about 14%. If the coup lasts for a long time and affects the export of minerals from Guinea, the supply of bauxite to China will have an obvious impact. Later domestic or increase to Australia and Indonesia and other countries imports, while ore prices may also have further rise.
As China’s first bauxite import country, Guinea 5 coup triggered aluminum ore supply concerns, even after the head of the military government urged miners to continue operations, futures still keep rising. 7 September, Shanghai aluminum futures continue to rocket upwards, breaking through 21800 yuan / ton, refreshing 13 years of new highs. Since late November 2020, aluminium has opened up to new record highs, with ingot prices continuing to rise from RMB14,000-15,000/tonne previously, and by the 7th, ingot prices had risen to a maximum of RMB21,830/tonne, a new high since 2008.
This year, aluminum prices rose about 40%, Guinea coup undoubtedly to the market on fire, or into the plight of the cook without rice, the rising flood of power has been unable to hold down the momentum, crazy aluminum prices, so that the aluminum processing industry practitioners struggling. They dare not change the pricing of products at will, most of the current wait-and-see, only hard resistance.
Aluminium price madness, there are aluminum a month up 5000RMB/TON