Emirates Global Aluminium announced on Friday that bauxite exports from its subsidiary, Guinea Alumina Corporation, have been halted by customs, with the company seeking clarification for the suspension.
Following the news, three-month aluminium prices on the London Metal Exchange (LME) rose by 2.5% to $2,650 per metric ton, while alumina prices on the Shanghai Futures Exchange (SHFE) hit a record high. Analyst Natalie Scott-Gray from StoneX noted that the disruption caused a surge in SHFE alumina prices, especially given China’s role as the largest bauxite importer globally.
Global alumina supply has faced challenges this year, with disruptions in both China and Australia. Guinea, the world’s largest bauxite exporter, accounts for 70% of global seaborne exports.Bauxite exports from Guinea have increased by 23% this year, driven by higher output from Guinea Alumina Corporation, which exported 14 million tons last year.
Meanwhile, copper prices in London saw a slight increase on Friday, though they were on track for their biggest weekly decline in five weeks due to weakened demand and rising inventories in China. LME copper was up 0.2% to $9,746 per ton but down 2% for the week. Investors are now awaiting further details on China’s stimulus measures, expected on Saturday.
In other metals, LME nickel rose by 1.6% to $17,820, zinc increased by 1% to $3,118.50, lead was up 1% to $2,086.50, and tin climbed 1.1% to $33,085.
