Century Aluminum shares continues to rise after US files a case at WTO

A number of analysts downgraded shares of Century Aluminum Company in 2016 after its negative performance in Third Quarter results. However, after the U.S. election results were out, the shares of the company, traded on the Nasdaq under ticker CENX, had been on a steady rise. During the current week, the shares of Century appreciated over 24%.

Century Aluminum Company operates three U.S. aluminium smelters, in Hawesville, Kentucky, Robards, Kentucky, and Mt. Holly, South Carolina, and one smelter in Grundartangi, Iceland. The company announced partial curtailment of production at the Hawesville facility in 2016. Century’s primary aluminium facilities produce standard grade and value-added primary aluminium products.


The company blamed overcapacity in China as one of the factors for their negative results. They were a part of the U.S. aluminium producers association that urged WTO to investigate the issues of overcapacity and unlawful export to the U.S. The U.S. producers claimed that subsidies have allowed Chinese aluminium producers to take away market share from other countries around the world in an unfair manner.

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Michael Bless, President and Chief Executive Officer commented on the issue after the third quarter results: "Overcapacity and overproduction continue to subsist in great quantities in China, negatively impacting rational producers and markets in the rest of the world. We firmly believe all major market participants are fully aware of the subsidies, illegal under WTO rules, that allow this overcapacity and overproduction to continue to exist and the distortion to fair trade that this behavior is causing...”

Century Aluminium has seen positive effects in the market after the U.S. filed a complaint with the World Trade Organization accusing China of expanding its aluminium production through subsidized loans and energy prices. Mr. Bless recently commended the U.S. Trade Representative’s (USTR) announcement that the United States has requested World Trade Organization (WTO) to initiate consultations with China regarding the Chinese government’s illegal subsidization of its aluminium industry.

The investors are hopeful about the company’s performance after the initiation of discussion by WTO with China.