Century Aluminum Shares Climb Over 5% as Alcoa Earnings Beat and Tight Aluminum Supply Lift US Producers

NEW YORK — Shares of Century Aluminum rose more than 5% on Friday, as strong results from larger rival Alcoa and signs of tight global aluminum supply lifted sentiment toward U.S. aluminum producers.

Century Aluminum shares were up $1.91, or 5.58%, at $36.11 in late-morning trading on the Nasdaq. The company has a market value of about $3.6 billion.

Century did not release any company-specific news on Friday.

Alcoa lifts the sector

The gain came after Alcoa reported third-quarter adjusted earnings of $1.82 per share, well above analyst expectations, and strong cash flow. Alcoa shares jumped more than 7%.

Alcoa's management also noted that global aluminum inventories remain historically low, a factor that can support prices for producers.

Alcoa's average realized aluminum price was $4,527 a tonne in the third quarter, down from the second quarter but well above year-earlier levels, reflecting a strong pricing environment for the metal.

US producer

Century Aluminum is one of the largest primary aluminum producers in the United States, operating smelters in Kentucky and South Carolina, as well as in Iceland.

U.S. tariffs on imported aluminum have benefited domestic producers by raising prices in the U.S. market. Century has been working to expand domestic production, including plans for new smelting capacity.

Low valuation

Century trades at a low valuation relative to its earnings, with a price-to-earnings ratio of about 5.5, reflecting both strong recent profits and investor caution about the volatility of aluminum prices and energy costs, which are a major expense for smelters.

The stock is up about 5% over the past year.

What's next

Century is expected to report its third-quarter results in the coming weeks. Investors will watch for updates on production, energy costs and the outlook for aluminum prices, as well as progress on expansion plans.