Aluminium and alumina prices spiked today after exports from major producer Guinea were unexpectedly halted.
The price of alumina, a powder produced from bauxite used by refineries to make pure aluminium, jumped to its highest in Shanghai since a futures market was established last year.
Emirates Global, the company hit by the Guinea disruption, said its alumina refinery in Abu Dhabi is still operating as normal.
Even so, the disruption adds to an already feverish market for aluminium with Chinese smelters in particular producing record amounts.
As a result, demand and prices for alumina were stoked by disruptions at major Western suppliers.
Alcoa (NYSE:AA) has shut its Kwinana alumina refinery in Western Australia while Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) declared force majeure on cargoes from its refineries in Queensland, Australia, because of gas shortages.
In China, alumina supplies have been hit by low bauxite availability.