Why Shares of Century Aluminum Co. Are Rising 12% Today
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What happened
Shares of Century Aluminum (NASDAQ: CENX), a producer of standard-grade, high-purity and value-added primary aluminum products, are trading 12% higher at 3:00 p.m. EST Wednesday for a couple of reasons.
So what
First, there's likely still remaining optimism from the news that the Commerce Department announced it discovered some aluminum exports from China Zhongwang Holdings Limited circumvented anti-dumping restrictions established in 2010.
With a large amount of aluminum production coming from China, a more stringent eye on those companies potentially dodging tariffs would likely help boost aluminum prices, a benefit to all U.S. based aluminum producers.
Further, Century Aluminum is also benefiting from a surprise Donald Trump presidential victory. Trump's candidacy made a point about rebuilding America's crumbling infrastructure, which would certainly help boost demand for aluminum and support higher prices.
Now what
It's fair to think that the aluminum market is bottoming out and that any positive news is enough to boost these beat down stocks. But it's important to keep this in mind: Trump isn't going to be in office until January and even then, little is known about what exactly his policies will be and how quickly they will be executed. So take these volatile moves after a surprise election victory with a grain of salt.
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