Century Aluminum shares trading 12% higher on Wednesday after election results

Shares of Century Aluminum, a loss making producer of standard-grade, high-purity and value-added primary aluminium products in the U.S., are trading 12% higher on Wednesday bringing a sigh of relief to the investors.

As a continuation of the downturn of US primary industry, Century reported a net loss of $58.3 million in Q3 against $9.5 million in Q2. Results were negatively impacted by factors like the closure of the Ravenswood facility and market inventory adjustment.

On a YOY comparison too, Century reported a net loss of $56.1 million partially caused by factors like smelter closure, market inventory adjustments, labour disruption and other cost cutting measures.

Century’s improved performance in the market is attributed to a number of factors. Firstly, there's a sense of optimism in the industry brought by the news that the Commerce Department has determined China Zhongwang Holdings Limited to be circumventing anti-dumping duties established in 2010 on some of its extrusion products.

The U.S. market is flooded with Chinese aluminium semis. Domestic aluminium producers are hopeful that a more stringent eye on the companies who are allegedly circumventing tariffs would help boost aluminium prices and improve the situation for the domestic aluminium producers.


The surprise victory of Donald Trump in the presidential election is also raising positive hopes among the investors. Trump promised rebuilding America's crumbling infrastructure during his election campaign and that is expected to boost demand for aluminium and increase prices.

The U.S. aluminium market is crippling under pressure and any positive news would boost these slowed down stocks. However, such volatile moves after a surprise election victory should be considered carefully till the time everything settles down and the new government start operation in January.

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