Few of the Russian media did not cite the forecast of the founder of UC Rusal Oleg Deripaska that because of the September 5 coup in Guinea, “the aluminum market could seriously shake up”, since 20% of world aluminum production uses bauxite “from this small and very poor country.” UC Rusal itself has about 40% of the company’s bauxite production in Guinea (data from the UC Rusal report for 2020), where the company has the Friguia bauxite-alumina complex. And in China, Guinean bauxite accounts for half of the import of this raw material, Bloomberg reports. And although there was no news of supply disruptions at the time of signing the issue, the market reacted nervously to the change of power in a “small and very poor” African country.
On September 6, UC Rusal shares reacted to the rise in aluminum prices. On the Hong Kong Stock Exchange, quotations rose to $ 6.97 from $ 6.09 at the close of previous trading (on Friday, September 3), on the Moscow Exchange they began to grow a little later, but there, on September 8, they gave 66.75 rubles. per share, while on September 6 – 61.575 rubles.
Aluminum prices rose to their highest since May 2011, on the LME the price of a three-month aluminum futures on September 8 reached $ 2759 per ton.
The culprit in the market concern is a former corporal of the Foreign Legion and, in recent years, the commander of the Guinean special forces, Colonel Mamadi Dumbuya, who led a coup d’état in Guinea.
Return of the corporal