Will cars and beer become even more expensive? The price of aluminum jumped in a maximum of fifteen years, due to the coup in Guinea

Forward contracts for delivery aluminum today when trading in China
have risen at their highest since 2006. It reached a ten-year high aluminium today got on storms in London. The reason is the political upheaval in African Guinea, which is one of the world’s leading exporters bauxitufrom which aluminium
acquires.

An attempted military coup is threatening a West African country that threatens supplies bauxitu in particular to China. Guinean bauxite represents more than half of all imports bauxitu do China. Stock traders fear restricting supplies to China can cause severe production downtime aluminum, which would lead to a further rise in its price in an already tense market.

Aluminium is used in the manufacture of, for example, components for cars
or beverage cans. For example, Czech manufacturers beer often justify
price increase packaged hop juice by rising prices of packaging materials. Imports of aluminum semi – finished products from China to the Czech Republic, however, until last year it contributed to total imports aluminum to the Czech Republic by less than four percent. However, last year the EU introduced up to a 48% provisional duty on imports of aluminum extrusions from China. In April this year, it set this duty at 46.7 percent. The reason is that they are still sold in the EU Chinese aluminum products at an artificially low price, to the detriment of EU producers.

Aluminium
however, this year became more expensive on London storms about forty percent. In connection with the duties that the EU imposes, such a rise in prices can lead to a significant increase price increase
aluminum products in the EU. This would further contribute to the overall wave price increase
input materials, which in the Czech Republic currently helps to make it to the most possibly the most significant consumer inflation, up to 4%, since 2008.

Lukáš Kovanda, Ph.D.

National Economic Council of the Government (NERV)

Chief Economist, Trinity Bank