GuineaMarkets

Aluminum prices reach decade high after Guinea coup

Aluminum prices rose to their highest level in 10 years Monday after a military coup in mineral-rich Guinea threatened to snarl the lightweight metal’s supply chain.

Three-month aluminum forward contracts on the London Metal Exchange rose 0.9% to $2,757 a metric ton, their highest level since early 2011.

Shares of mining companies and aluminum producers also jumped. Hong Kong-listed shares of Russia’s United Co. Rusal  486, +14.45% rose over 14% by the close of trading Monday, while Aluminum Corporation of China Ltd. rose over 5%. Australian bauxite miner South32 Ltd. rose 2.1% in Sydney.

A faction of Guinea’s military on Sunday said they had suspended the country’s constitution and detained President Alpha Condé. The West African nation is a major global supplier of bauxite—crucial for the manufacturing of aluminum—and iron ore.

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