Century Aluminum Hails 50% Tariff Enforcement, LME Aluminum Hits $3,500/Ton
Century Aluminum praised an executive order closing valuation loopholes and fully enforcing the 50% Section 232 tariff, underpinning its 10% US production growth and multibillion-dollar investments to double capacity and add thousands of jobs. Disrupted Middle East alumina shipments propelled LME aluminum to four-year highs near $3,500/ton, boosting smelter margins.
1. Executive Order Closes Tariff Loopholes
An executive order will close valuation loopholes that importers used to understate aluminum shipments, mandating full value declarations for Section 232 coverage and preserving the 50% primary aluminum tariff to protect US producers.
2. Production Growth and Capacity Expansion
Since reinforced Section 232 measures took effect, Century Aluminum’s US output has risen by 10%, and the company has allocated billions of dollars to new smelting capacity projects aimed at doubling production and supporting thousands of jobs.
3. Middle East Supply Constraints Push Prices Higher
Damage to production facilities and blocked alumina shipments through key routes have tightened global supply, lifting LME aluminum prices to levels near $3,500 per ton—the highest in four years.
4. Margin Enhancement and Competitive Position
Full enforcement of the 50% tariff combined with elevated metal prices strengthens Century Aluminum’s smelter margins, enhancing its ability to compete against foreign producers and reinvest in US operations.