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China alumina costs struck record high up on Guinea bauxite supply concern

Prices of alumina on the Shanghai Futures Exchange leapt more than 6% to a record high on Friday on issues of bauxite supply disruption from Guinea amid an already tight market.

Later in the day, Emirates Global Aluminium (EGA) stated bauxite exports from its subsidiary Guinea Alumina Corporation ( GAC) are suspended by customizeds.

Bauxite is improved into alumina, the primary ingredient in making aluminium.

We are seeking clearness from customs on the reason for this action, and are working to resolve this as rapidly as possible, EGA stated in a declaration in action to Reuters ask for remark.

Production at Al Taweelah alumina refinery continues as regular and we do not predict any effects from this, it said.

The most-traded November alumina agreement on the Shanghai Futures Exchange rose as much as 6.4% to 4,630 yuan ($ 655.20) a metric load, a record high since the agreement was launched in June.

The agreement reduced later on in the session, however closed 4.6%. higher at 4,553 yuan a heap.

The declaration was provided after the SHFE was closed.

The refinery produced 2.48 million lots of alumina in 2023. and GAC exported 14.1 million lots of bauxite last year, EGA. said on its website.

Guinea is the world's No. 2 bauxite manufacturer, after. Australia.

Any news could fire up SHFE price as the alumina spot market. is already tight, stated a trader in China.

However, if the GAC issue is dealt with within a few weeks,. the influence on alumina output will be very little, the trader said.

Chinese alumina intake has been strong as domestic. aluminium manufacturers increase production amidst healthy profit.

Alumina costs have support in the short-term from lack. of domestic Chinese bauxite supply, high price of imported. bauxite and strong demand, stated Chen Xinlin, handling. specialist at Wood Mackenzie.

The China area alumina cost struck the greatest since a minimum of. 2012 at 4,214 yuan a heap on Thursday, according to Shanghai. Metals Market information released on LSEG Work space.

The price has actually surged 35% this year and is set for a 4th. directly yearly gain. ($ 1 = 7.0665 yuan)

(source: Reuters)