Century Aluminum CEO Credits Trump Tariffs for US Production Boost

Smelter Restart and Production Increase

• 🚀 Century Aluminum CEO Jesse Gary announced the significant restart of a US smelter, marking the first increase in US aluminum production in decades.
• 💡 This restart is attributed directly to President Trump's tariff program, which has helped reverse the trend of declining domestic production.
• 📈 The restart will boost US domestic aluminum production by nearly 10%, aiming for full capacity by June 2026.

Impact of Tariffs and Trade Policy

• ⚠️ Before tariffs, the US faced dumping of aluminum at cheaper prices, leading to the shutdown of two US smelters.
• ✈️ Under the Biden administration, Canada received an exemption, leading to a 30% increase in imports into the US, negatively impacting domestic production.
• 🏗️ With President Trump back in office, Century Aluminum is investing and planning to build the first new aluminum smelter in the US in 50 years, creating over 6,000 jobs during construction and adding 1,000 operational jobs.

Financial Performance and Outlook

• 📊 Century Aluminum reported mixed second-quarter earnings, beating revenue estimates but missing earnings per share, partly due to higher power and SGNA costs.
• 💰 The company is excited about its third quarter, expecting adjusted EBITDA to increase by 115-125 million dollars, with further increases anticipated in Q4.
• 📈 Domestic orders and value-added production/sales have increased by 8% year-over-year, making the US a strong market for the company.

Demand and Future Operations

• 🏠 Strong growth is observed in the building and construction sectors, particularly HVAC, and also in automotive demand.
• 🏭 The company anticipates continued increasing demand for US-produced aluminum through Q4 and into 2026, driven by value-added products.
• 🌍 European operations are weaker with less direct catalysts, making the US a more bullish market for Century Aluminum.

Global Pricing and New Smelter Project

• 💲 Aluminum is priced globally based on supply and demand; reduced Chinese production and limited new global capacity are expected to support aluminum prices.
• 🇺🇸 Century Aluminum prefers new production to come online in the US and is ready to meet this demand, which should benefit its projects and workers.
• ⚙️ A strategic review for the Hawville facility is expected by the end of Q3, with next steps to be announced.
• ✨ The new smelter project aims to be one of the most advanced and efficient aluminum smelters globally, setting the pace for future US aluminum production.