By Yongchang Chin

Aluminum Corp. of China Ltd.'s shares jumped Monday, partly on concerns that a coup in Guinea threatens the global supply of bauxite, an element crucial for the making of aluminum.

Shares of state-owned Chalco, one of the world's largest aluminum producers, closed 5.5% higher, extending a monthslong rally stemming from rising demand in China and higher global aluminum prices.

The company's shares have more than doubled in 2021 on expectations of higher profit after China became a net importer of aluminum in 2020.

Chalco should benefit from robust demand for base metals, S&P Global Ratings said. It expects the company to sell 3.8 million-4.0 million metric tons of primary aluminum a year in 2021-2022, compared with 3.7 million tons in 2020.

High aluminum prices should also support a higher Ebitda margin of 10%-11% in 2021-2022, compared with 8.1% in 2020, S&P Global Ratings said.

The benchmark aluminum contract on the London Metal Exchange rose 1.1% to $2,757.0 a ton, its highest level since April 2011, after soldiers in Guinea said they had suspended the constitution and detained the country's president. Guinea is the world's largest exporter of bauxite, according to brokerage Marex.

Goldman Sachs expects prices to rise further on likely worsening global supply of the metal. The investment bank has a 12-month price target of $3,200 a ton.

Write to Yongchang Chin at yongchang.chin@wsj.com

(END) Dow Jones Newswires

09-06-21 0540ET