Guinea Coup Sends Aluminum Prices Soaring To Fresh Decade Highs

Doumbouya told the nation the coup was essential to address the gross financial mismanagement and corruption under President Alpha Conde. He added the president is safe. 

"If you see the condition of our roads, of our hospitals, you realize that it is time for us to wake up," Doumbouya said. "We are going to initiate a national consultation to open an inclusive and peaceful transition."

The unexpected events of the coup added more fuel to the fire for aluminum prices as smelters in top producer China faced stricter power controls measures by Beijing to curb carbon emissions. 

"Investors are quite concerned given China buys a big chunk of bauxite from Guinea," Xiong Hui, the chief aluminum analyst with Beijing Antaike Information Development Co. He said there have yet to be any reports of supply disruptions. The situation is ongoing and comes at an inopportune time as China's Guangxi province cuts production, tightening the market. 

A combination of political unrest in Guinea and China's smelter crackdown has resulted in challenges for the aluminum market that has pushed prices to decade highs. So much for the Federal Reserve's transitory narrative. 

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