Mali frees Resolute executives after $160 million deal, AFP reports
The three executives, including CEO Terry Holohan, were freed from detention on Wednesday.
Aluminum prices jumped over 2% on the London Metal Exchange Friday after a key supplier, Emirates Global Aluminium (EGA), announced a suspension of bauxite exports from its Guinea Alumina Corporation (GAC) subsidiary.
The disruption, caused by customs actions, impacts the raw material essential for producing alumina, the primary ingredient in aluminum.
EGA said it is working to resolve the issue swiftly, though production at its Al Taweelah refinery remains unaffected.
Aluminum prices rose as high as 2.7%, reaching $2,655 per tonne, while alumina futures in Shanghai surged 4.2% to 4,553 yuan ($644) per tonne — the highest since their launch in June 2023.
This suspension adds to a year of supply constraints in the alumina market. Earlier disruptions included Alcoa’s closure of its Kwinana refinery in Australia and Rio Tinto’s declaration of force majeure at its Queensland refineries due to gas shortages. China has also faced alumina supply limitations from bauxite shortages amid environmental inspections.
Chinese alumina producers have ramped up output to capitalize on the high prices, with 6.4 million tonnes of new capacity expected in 2024. However, this additional supply could temper the price rally.
“Alumina prices have support in the short term from shortage of domestic Chinese bauxite supply, high price of imported bauxite and strong demand,” said Chen Xinlin, managing consultant at Wood Mackenzie.
Trafigura Group highlighted the strain these price surges are placing on aluminum smelters, calling it the most significant factor influencing the market outlook.
(With files from Reuters and Bloomberg)
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Comments
Ibrahim jalloh
Good news