HK Stock Market Move | Aluminum stocks rebound in early trading, Guinea to tighten bauxite supply rules to curb price declines.

The aluminum sector rebounded in the morning session, as of the time of drafting, NANSHAN AL INTL (02610) rose by 4.04% to 64.35 Hong Kong dollars; Aluminum Corporation Of China (02600) rose by 1.62% to 13.15 Hong Kong dollars. On the news front, the world's largest bauxite producing country, Guinea, is in discussions with miners to control the amount of ores entering the market in order to curb the downward trend in raw material prices. As the raw material for producing alumina, the price of bauxite has nearly halved since the beginning of 2025. Guinea's bauxite exports increased by over a quarter last year, reaching 183 million tons. UBS released a research report stating that recent Middle East supply risks have pushed up international aluminum and thermal coal prices, suggesting that after oil and natural gas, aluminum and thermal coal are the commodities most affected by the Middle East conflict. In terms of aluminum, the Middle East supply disruptions and rising energy costs are pushing up cost curves. Approximately 650,000 tons of aluminum supply have been disrupted, and if shipping in the Strait of Hormuz continues to be blocked for weeks, it could lead to around 4 million tons of smelting capacity being shut down, increasing the short-term upside risk for aluminum prices.