Global Metals Market on Edge Following Guinea Coup and Mounting Concerns About China’s Economy

The coup in Guinea combined with new indicators that China’s economy may be slowing is contributing to a period of considerable turbulence in global metals markets as investors try to gauge the impact of these trends on Chinese demand for bauxite, copper, and iron ore:

  • BAUXITE: The price of aluminum on the Londons Metals Exchange pulled back on Tuesday from the decade-high reached the previous day. Despite considerable uncertainty, investors appear to be taking some comfort that bauxite mining operations in Guinea have not been impacted by the overthrow of the government. Bauxite is a key ingredient used to manufacture aluminum. (BLOOMBERG)
  • COPPER: Mounting anxieties over the health of the Chinese economy weighed on copper prices in Tuesday trading on the London Metals Exchange. New customs data revealed that Chinese imports in August plunged 41% compared to the same time last year and have fallen for five consecutive months. Strong Chinese demand earlier this year helped to push copper prices sharply higher, giving a boost to exporters in Zambia and the DR Congo among others. (REUTERS)
  • IRON ORE: Iron ore traders brushed aside the events in Guinea and pushed up prices 4.2% for the red metal on news that Chinese imports picked up for the first time in five months. China imported a record $20 billion of iron ore in August, mostly from Australia, which came as a bit of a surprise to some given the government’s desire to limit steel production in an effort to curb carbon emissions. (MINING.COM)

SUGGESTED READING:

  • Get a daily email packed with the latest China-Africa news and analysis.
  • Read exclusive insights on the key trends shaping China-Africa relations.
  • Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

OR

Already a subscriber? Log in Click Here to Learn More
by Eric Olander

Most Read

1
Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
2 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C
3
Chinese Cargo Planes Secretly Ferrying Supplies to Iran, Claim Online Sleuths
4
Indonesia Goes Nuclear, Taps China and Russia for Modular Reactors
5 Trump’s Contradictory Iran Strategy Leaves U.S. Weaker After War’s End, Says Chinese Commentator
6
Thailand in Last-Minute U.S. Talks as 36% Tariff Looms

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.

More about CGSP