Should Century Aluminum Bears Brace for Hard Times?
While aluminum prices are volatile, premiums tend to be sticky. The Section 232 tariffs have lifted US Midwest aluminum premiums, which should boost earnings of companies like Alcoa (AA) and Century Aluminum. Secondly, alumina prices (RIO) (XME) have already fallen to more normalized levels after Alunorte curtailment and RUSAL sanctions lifted prices to multiyear highs.