CENX - Aluminum prices seen rebounding with low global inventories Century CEO says

2023-08-10 19:45:41 ET

Aluminum prices on the London Metal Exchange prices and regional premiums should rebound quickly when demand conditions improve, Century Aluminum ( NASDAQ: CENX ) President and CEO Jesse Gary said, according to S&P Global Platts.

Overall global aluminum supply and demand levels have returned to "near balance levels," with global days of inventory holding at near 50 days, Gary reportedly said on the company's post-earnings conference call late Wednesday.

"Inventories have remained at these relatively low levels despite a growing number of global consumers no longer accepting Russian metal following the Russian invasion of Ukraine," Gary said on the call, noting Russian metals now accounts for ~80% of LME inventories, up from 10% before Russia's invasion of Ukraine.

Century Aluminum ( CENX ) closed -8.5% in Thursday's trading after reporting a larger than expected Q2 adjusted loss .

Q2 total aluminum shipments fell nearly 19% Y/Y to 173,649 metric tons, down from 214,084 tons in the prior-year period, with U.S. operations accounting for the entire loss, shipping 97,224 metric tons, down 30% from 139,630 tons a year ago; Icelandic operations shipped 76,425 tons, up from 74,454 tons a year earlier.

"Global conditions remain complex, with rising interest rates slowing Western economies over the first half and impacting our markets," Gary said.

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