Aluminum Hits 13-Year High as Supply Woes Build, Demand Booms
(Bloomberg) -- Aluminum surged to the highest since 2008 as political turmoil in Guinea added to worries about tightening supply at a time when demand is booming.
The metal rallied as much as 1.8% in London, and is now up about 90% from lows struck in April last year amid a global economic recovery and a supply squeeze in China. On Sunday, a military unit seized power in Guinea, destabilizing the African nation that’s a key source of bauxite used to make aluminum.
Even before the political turmoil in Guinea, analysts said prices look set to breach record highs above $3,300 a ton as a global deficit deepens. That’s largely due to massive global stimulus measures stoking demand, Chinese smelters struggling to maintain output during a seasonal power crunch, and Beijing’s moves to rein in the industry’s carbon emissions.
Aluminum rose 1.8% to $2,807 a ton on the London Metal Exchange by 9:21 a.m. in New York.
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