LONDON, Sept 6 (Reuters) - Aluminium prices rose on Monday
after reports of a coup in Guinea triggered concerns that supply
of bauxite, the raw material used to make the metal, could be
Guinea produces about a quarter of the world's bauxite,
analysts said, though there is no sign yet of supply disruption.
A military spokesman on Monday said that the country had
reopened its land and air borders a day after special forces
soldiers said they had dissolved the government and
Benchmark aluminium on the London Metal Exchange
(LME) was up 1.6% at $2,769.50 a tonne at 1603 GMT after
touching its highest since May 2011 at $2,782.
Prices in China for bauxite from Guinea, meanwhile, hit
their highest in almost 18 months.
Aluminium prices have risen by about 40% this year.
The events in Guinea are "adding fuel to the fire, not least
since the whole bullish narrative for aluminium is about tight
supplies", said Julius Baer analyst Carsten Menke, though he
believes that the country's new rulers are unlikely to disrupt
an industry so important to the nation's economy.
RUSAL: Russia's Rusal said it aimed to keep its
three major bauxite mines and one alumina refinery in Guinea
SUPPLY: A prolonged period of high aluminium prices created
partly by output cuts in China is expected to encourage new
capacity elsewhere, eventually weighing on prices.
RING: The LME's open outcry ring hosts trading on Monday for
the first time since March 2020. One dealer has dropped out,
leaving eight ring-trading firms, with some expecting reduced
GERMANY: Industrial orders in Germany surged unexpectedly in
CHINA: Export growth in China is expected to have moderated
in August amid port congestion caused by fresh COVID-19 cases, a
Reuters poll showed.
MARKETS: Global shares are on their longest winning streak
in three months.
CHILE: Minera Lumina Copper said it had reached a deal with
workers at its Caserones mine in Chile, ending an almost
METALS PRICES: Benchmark LME copper was up 0.3% at
$9,455.50 a tonne, zinc rose 0.6% to $3,014, nickel
fell 0.7% to $19,655, lead slipped 1.7% to
$2,271 and tin was down 0.8% at $32,800.
(Reporting by Peter Hobson
Additional reporting by Mai Nguyen in Hanoi
Editing by David Goodman and Louise Heavens)