Century Aluminum Expands Production in South Carolina
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy CENX?
Source: seekingalpha
Century Aluminum Co's stock fell by 6.83% as it crossed below the 5-day SMA, despite the broader market's gains with the Nasdaq-100 up 1.36% and the S&P 500 up 1.38%.
The company has begun hot metal production at its Mt. Holly, S.C. plant, which is expected to increase U.S. aluminum production by 10%. This expansion is part of a historic investment plan in partnership with Emirates Global Aluminum to build the first aluminum smelter in the U.S. in nearly 50 years, adding 750,000 tonnes of production capacity. This move is seen as crucial for enhancing U.S. economic and national security amid rising aluminum prices driven by geopolitical tensions.
The implications of this expansion are significant, as it not only solidifies Century Aluminum's position as the largest aluminum producer in the U.S. but also creates over 125 jobs, contributing positively to the local economy. However, the stock's decline may reflect investor caution amid broader market trends.
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Analyst Views on CENX
Wall Street analysts forecast CENX stock price to fall
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 61.330
Low
42.00
Averages
55.67
High
64.00
Current: 61.330
Low
42.00
Averages
55.67
High
64.00
About CENX
Century Aluminum Company is a global producer of primary aluminum and alumina with production facilities in the United States, Iceland and Jamaica. The Company also own a carbon anode production facility located in the Netherlands (Vlissingen). Carbon anodes are consumed in the production of primary aluminum. Vlissingen supplies carbon anodes to its aluminum smelter in Iceland. [AJ1] Its bauxite mining and alumina refinery in Clarendon, Jamaica (Jamalco) produces smelter grade alumina for consumption around the world. It also owns and operates aluminum reduction facilities in the United States and Iceland. It operates a United States aluminum smelters in Goose Creek, South Carolina and one smelter in Grundartangi, Iceland (Noroural, commonly referred to as Grundartangi). Its primary aluminum facilities produce standard grade and value-added primary aluminum products, including low-carbon aluminum products, Natur-Al, produced in Iceland.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Aluminum Stocks Surge Amid Middle East Conflict
- Aluminum Price Surge: Amid U.S.-Israeli military actions against Iran, aluminum prices have surged past $3,600 per tonne, with analysts warning they could reach $4,000 if regional production losses persist, significantly impacting the global aluminum market and enhancing U.S. producers' profitability.
- Strong Company Performance: Since the onset of the conflict, Alcoa (AA) and Century Aluminum (CENX) have seen their stock prices rise by 20% and 28%, respectively, reflecting market optimism about the aluminum sector, particularly in light of Trump's increased tariffs on aluminum imports.
- Earnings Report Analysis: Although Alcoa reported a 5.2% decline in Q1 revenue, falling short of Wall Street estimates, its earnings per share of $1.4 met expectations, indicating the company's resilience in a high aluminum price environment, with production projected to remain between 2.4 to 2.6 million metric tons in 2026.
- Optimistic Market Outlook: Morgan Stanley upgraded Alcoa to 'Overweight' with a price target raised to $80, reflecting analysts' confidence in rising aluminum prices and Alcoa's high operating leverage, with expectations that future aluminum supply shortages will further drive stock prices upward.
See More
Century Aluminum Begins Production Expansion in South Carolina
- Capacity Expansion: Century Aluminum has commenced the production of the first hot metal at its Mt. Holly plant in South Carolina, which is expected to boost U.S. primary aluminum output by approximately 10%, solidifying its position as the largest primary aluminum producer in the U.S.
- Project Timeline: The expansion project is anticipated to reach full production by the end of June, enhancing the company's competitive edge while driving record investments in American aluminum production.
- Market Dynamics: Following President Trump's Section 232 tariffs, U.S. aluminum prices have surged, increasing costs for domestic consumers but simultaneously fueling record investments in U.S. aluminum production.
- Strategic Partnership: Century Aluminum is partnering with Emirates Global Aluminum to establish the first primary aluminum smelter in the U.S. since 1980, which will add another 750,000 metric tons of aluminum production capacity, effectively doubling the current U.S. capacity.
See More
Century Aluminum Begins Hot Metal Production Following Expansion in South Carolina
- Production Expansion Launched: Century Aluminum has commenced hot metal production at its Mt. Holly, S.C. plant, with full production expected by the end of June 2026, which will increase U.S. aluminum production by 10%, further solidifying its position as the largest aluminum producer in the U.S.
- Job Creation: The expansion project has already created over 125 well-paying jobs, enhancing the local economy and providing stable employment opportunities for the community, demonstrating the company's commitment to South Carolina.
- Historic Investment Plan: Century Aluminum is partnering with Emirates Global Aluminum to build the first aluminum smelter in the U.S. in nearly 50 years, expected to add 750,000 tonnes of aluminum production capacity, marking the largest single investment in critical metal production in U.S. history.
- National Security and Economic Impact: The CEO emphasized that President Trump's aluminum tariff policy is driving record investments in U.S. aluminum production, reinforcing the necessity for domestic production to address global supply chain disruptions, thereby ensuring U.S. economic and national security.
See More
Aluminum Prices Surge to Four-Year High Amid Geopolitical Tensions
- Aluminum Price Surge: Aluminum prices soared to $3,571 per metric ton on Monday, the highest since March 2022, following the collapse of U.S.-Iran peace talks and President Trump's blockade threats, indicating heightened market concerns over supply disruptions.
- Market Tightening: The aluminum market has tightened significantly due to regional shipping and production risks, with the spread on cash contracts over three-month delivery contracts surging to approximately $91.50 per ton, a stark reversal from a $12 per ton discount earlier in the conflict, reflecting a shift in market sentiment.
- Production Disruptions: Emirates Global Aluminium, the largest producer in the Middle East, invoked force majeure on some contracts after significant damage to its Al Taweelah plant from an Iranian attack, with full operational recovery potentially taking up to a year, exacerbating supply constraints in the market.
- Impact on Other Producers: Bahrain's Alba and Norway's Norsk Hydro have also reduced production due to shipping issues through the Strait of Hormuz, with Alba cutting output in March and Norsk Hydro slowing operations at its Qatalum smelter in Qatar, highlighting the vulnerability of aluminum production in the region.
See More
RIO TINTO GROUP AND CENTURY ALUMINUM INCREASE US SURCHARGE BY APPROXIMATELY 12% DUE TO SUPPLY DISRUPTIONS FROM WAR - BLOOMBERG NEWS
Aluminum Price Surge: Aluminum prices have increased by approximately 12% due to supply disruptions.
Impact of War: The ongoing war has significantly affected the supply chain, contributing to the rise in aluminum costs.
See More
Emirates Global Aluminium May Take a Year to Restore Full Output
- Output Restoration Timeline: Emirates Global Aluminium (EGA) announced that full output restoration at its Al Taweelah smelter could take up to a year due to significant damage from an Iranian missile and drone strike, impacting regional aluminum production stability.
- Initial Damage Assessment: EGA has completed an initial damage assessment of the Al Taweelah facilities and is in contact with affected customers to ensure timely communication regarding potential shipment delays, demonstrating the company's commitment to customer relations.
- Global Aluminum Market Impact: The Middle East accounts for approximately 9% of global aluminum production, and with output constraints elsewhere eroding inventories, the market has little buffer to absorb shocks, potentially leading to further price increases.
- Aluminum Price Surge: Since the onset of the war, aluminum prices on the London Metal Exchange have surged over 10%, reflecting market concerns over supply disruptions, and EGA's output restoration timeline will significantly influence future aluminum price trends.
See More
Aluminum Stocks Surge Amid Middle East Conflict
- Aluminum Price Surge: Amid U.S.-Israeli military actions against Iran, aluminum prices have surged past $3,600 per tonne, with analysts warning they could reach $4,000 if regional production losses persist, significantly impacting the global aluminum market and enhancing U.S. producers' profitability.
- Strong Company Performance: Since the onset of the conflict, Alcoa (AA) and Century Aluminum (CENX) have seen their stock prices rise by 20% and 28%, respectively, reflecting market optimism about the aluminum sector, particularly in light of Trump's increased tariffs on aluminum imports.
- Earnings Report Analysis: Although Alcoa reported a 5.2% decline in Q1 revenue, falling short of Wall Street estimates, its earnings per share of $1.4 met expectations, indicating the company's resilience in a high aluminum price environment, with production projected to remain between 2.4 to 2.6 million metric tons in 2026.
- Optimistic Market Outlook: Morgan Stanley upgraded Alcoa to 'Overweight' with a price target raised to $80, reflecting analysts' confidence in rising aluminum prices and Alcoa's high operating leverage, with expectations that future aluminum supply shortages will further drive stock prices upward.
See More
Century Aluminum Begins Production Expansion in South Carolina
- Capacity Expansion: Century Aluminum has commenced the production of the first hot metal at its Mt. Holly plant in South Carolina, which is expected to boost U.S. primary aluminum output by approximately 10%, solidifying its position as the largest primary aluminum producer in the U.S.
- Project Timeline: The expansion project is anticipated to reach full production by the end of June, enhancing the company's competitive edge while driving record investments in American aluminum production.
- Market Dynamics: Following President Trump's Section 232 tariffs, U.S. aluminum prices have surged, increasing costs for domestic consumers but simultaneously fueling record investments in U.S. aluminum production.
- Strategic Partnership: Century Aluminum is partnering with Emirates Global Aluminum to establish the first primary aluminum smelter in the U.S. since 1980, which will add another 750,000 metric tons of aluminum production capacity, effectively doubling the current U.S. capacity.
See More
Century Aluminum Begins Hot Metal Production Following Expansion in South Carolina
- Production Expansion Launched: Century Aluminum has commenced hot metal production at its Mt. Holly, S.C. plant, with full production expected by the end of June 2026, which will increase U.S. aluminum production by 10%, further solidifying its position as the largest aluminum producer in the U.S.
- Job Creation: The expansion project has already created over 125 well-paying jobs, enhancing the local economy and providing stable employment opportunities for the community, demonstrating the company's commitment to South Carolina.
- Historic Investment Plan: Century Aluminum is partnering with Emirates Global Aluminum to build the first aluminum smelter in the U.S. in nearly 50 years, expected to add 750,000 tonnes of aluminum production capacity, marking the largest single investment in critical metal production in U.S. history.
- National Security and Economic Impact: The CEO emphasized that President Trump's aluminum tariff policy is driving record investments in U.S. aluminum production, reinforcing the necessity for domestic production to address global supply chain disruptions, thereby ensuring U.S. economic and national security.
See More
Aluminum Prices Surge to Four-Year High Amid Geopolitical Tensions
- Aluminum Price Surge: Aluminum prices soared to $3,571 per metric ton on Monday, the highest since March 2022, following the collapse of U.S.-Iran peace talks and President Trump's blockade threats, indicating heightened market concerns over supply disruptions.
- Market Tightening: The aluminum market has tightened significantly due to regional shipping and production risks, with the spread on cash contracts over three-month delivery contracts surging to approximately $91.50 per ton, a stark reversal from a $12 per ton discount earlier in the conflict, reflecting a shift in market sentiment.
- Production Disruptions: Emirates Global Aluminium, the largest producer in the Middle East, invoked force majeure on some contracts after significant damage to its Al Taweelah plant from an Iranian attack, with full operational recovery potentially taking up to a year, exacerbating supply constraints in the market.
- Impact on Other Producers: Bahrain's Alba and Norway's Norsk Hydro have also reduced production due to shipping issues through the Strait of Hormuz, with Alba cutting output in March and Norsk Hydro slowing operations at its Qatalum smelter in Qatar, highlighting the vulnerability of aluminum production in the region.
See More
RIO TINTO GROUP AND CENTURY ALUMINUM INCREASE US SURCHARGE BY APPROXIMATELY 12% DUE TO SUPPLY DISRUPTIONS FROM WAR - BLOOMBERG NEWS
Aluminum Price Surge: Aluminum prices have increased by approximately 12% due to supply disruptions.
Impact of War: The ongoing war has significantly affected the supply chain, contributing to the rise in aluminum costs.
See More
Emirates Global Aluminium May Take a Year to Restore Full Output
- Output Restoration Timeline: Emirates Global Aluminium (EGA) announced that full output restoration at its Al Taweelah smelter could take up to a year due to significant damage from an Iranian missile and drone strike, impacting regional aluminum production stability.
- Initial Damage Assessment: EGA has completed an initial damage assessment of the Al Taweelah facilities and is in contact with affected customers to ensure timely communication regarding potential shipment delays, demonstrating the company's commitment to customer relations.
- Global Aluminum Market Impact: The Middle East accounts for approximately 9% of global aluminum production, and with output constraints elsewhere eroding inventories, the market has little buffer to absorb shocks, potentially leading to further price increases.
- Aluminum Price Surge: Since the onset of the war, aluminum prices on the London Metal Exchange have surged over 10%, reflecting market concerns over supply disruptions, and EGA's output restoration timeline will significantly influence future aluminum price trends.
See More
