CSTM - Aluminum hits $3000 for first time since 2008

Aluminum prices continue to rally, with the spot price on the London Metals Exchange hitting $3,000 per metric ton for the first time in more than a decade on supply issues. Alcoa (NYSE:AA) is up 2.4% premarket, with other aluminum plays Arconic (NYSE:ARNC), Constellium (NYSE:CSTM) and Kaiser Aluminum (NASDAQ:KALU) little changed. A coup in Guinea, a major producer of bauxite, has hit supply. "The increased uncertainty around the new political regime in one of the world’s largest bauxite-producing countries may disrupt global commodity export flows and also raises the likelihood of export contracts renegotiation, which may put upside pressure on alumina and aluminum prices,” J.P. Morgan said, according to the Financial Times. The iPath Series B Bloomberg Aluminum Subindex Total Return ETN (NYSEARCA:JJU) and the S&P GSCI Aluminum Index Spot (SPGSIA) are also hitting highs. Production curbs in China have also dented supply.

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Aluminum hits $3000 for first time since 2008