Why has a lockdown in Chinese city sent aluminum prices surging?

Why has a lockdown in Chinese city sent aluminum prices surging?

BEIJING: The COVID lockdown this week of a relatively unknown Chinese city sent global prices of aluminum rocketing to a 14-year high. Why did the outbreak in Baise spark fears around the world about the key metal?

Where is Baise?

Located near the border with Vietnam, Baise is nicknamed the “aluminum capital of southern China”. Home to around 3.5 million people, Baise is a hub for aluminum mining and production. It produces about 2.2 million tons of the commodity per year-more than 80 percent of the output in the resource-rich Guangxi region. Guangxi is China’s main alumina-exporting region, shipping out around 500,000 tons of the aluminum component per month. China is the world’s biggest producer of aluminum, a crucial component in major industries including automobiles, construction and consumer goods.

Why was Baise locked down?

At just under 190 cases, the Baise coronavirus outbreak is tiny compared with caseloads in other parts of the world. China, however, has a zero Covid strategy, using strict, targeted lockdowns, travel restrictions and mass testing to eliminate infections. Baise was locked down Monday, leaving most of its residents under home confinement and others unable to leave rural counties and townships under the city’s jurisdiction. The national COVID strategy has