Can Century Aluminum Continue Its Rise?
Century Aluminum (CENX) was among the best-performing aluminum stocks in 2016, with gains of 94%.
Arconic has a mean one-year price target of $29.25, representing a 4.9% upside over its closing price on March 21, 2017.
Due to Alcoa’s (AA) strong cash flow generation in November and December 2016, its net debt fell below $600 million on December 31, 2016.
Alcoa (AA) has been proactive in controlling its costs to stay competitive in the subdued commodity pricing environment.
For commodity companies like Alcoa and Rio Tinto, the industry outlook is as important—if not more important—than the company’s position in the industry.
Alcoa (AA) has a mean one-year price target of $41.10, which represents a 17.8% upside over its closing price on March 21, 2017.
Alcoa (AA) released its 4Q16 financial results on January 24, reporting a net loss of $125 million in 4Q16—a loss per share of $0.68.
For commodity companies like Rio Tinto (RIO), the industry outlook is as important, if not more important, than the company’s position in the industry.
Century Aluminum (CENX) has a net debt-to-EBITDA multiple of 4.3x. Its leverage ratios are higher compared to Alcoa based on the net debt-to-EBITDA metric.
With aluminum prices showing strength in 2016, aluminum producers should post incrementally higher profitability in 2017.
Alcoa expects to ship 47.5 million bone dry metric tons–48.5 million bone dry metric tons of bauxite in 2017—compared to 2016.
Alcoa produced 2.42 million metric tons of aluminum in 2016—compared to 2015. Century Aluminum’s 2016 aluminum shipments fell steeply.
While Alcoa’s production profile fell due to capacity curtailments, it managed to bring down its unit costs due to curtailment of high-cost capacities.
Most aluminum companies have reported their earnings for the quarter. Alcoa (AA) reported its 4Q16 financial results on January 24.
China and aluminum As noted in the previous parts, China’s aluminum production rose almost 19% year-over-year last month, while the country’s unwrought aluminum exports rose only 2.6% during the period.…
China’s January aluminum production According to the data released by the International Aluminum Institute, China produced ~2.95 million metric tons of aluminum in January, which represents a YoY increase of almost…
Chinese aluminum demand indicators Since China is the world’s biggest aluminum consumer, it’s pertinent for investors in Alcoa (AA), Century Aluminum (CENX), and Norsk Hydro (NHYDY) to keep track of…
Chinese aluminum exports One of the major challenges for the global aluminum industry has been the rise in Chinese aluminum exports. Aluminum producers like Alcoa (AA) and Century Aluminum (CENX)…
Physical premiums For aluminum producers, the all-in aluminum price consists of the aluminum price plus regional aluminum premiums. The premium is a surcharge that consumers must pay on top of…
Alumina markets Before we analyze alumina markets, let’s look at aluminum’s value chain. It starts with mining bauxite—one of the most abundant metals in the Earth’s crust. Due to bauxite’s many…