Russian businessman Oleg Deripaska believes that the consequences of the coup in Guinea will be devastating for the world’s aluminum industry. He’s shared his worries on Twitter.
According to the mogul, the state coup in the country can bring the aluminum market down.
“This situation can shake up the aluminum market because about 20% of the world’s production of aluminum relies on bauxites from this tiny and poor country,” he said.
On September 5, Guinean President Alpha Conde was captured by military forces, which have taken responsibility for the state coup. The rebels’ leader Mamady Doumbouya announced the dissolution of the government and Guinean constitution. Rebel forces also closed all border crossings.
So far, the aluminum future price has risen by 0.59% to $2.748 per ton.
The situation may also affect Kazakhstan which relies heavily on the nonferrous metal industry. In 2021, the country plans to increase the production of zinc by 18.6%, lead by 18.8%, copper concentrate by 9% and aluminum by 6%.
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