Century Aluminum: Economy Better But Need More Consistency

Century Aluminum Co. (CENX) said Tuesday there was some improvement in global economic conditions but it was looking for more consistency in the recovery. The U.S.-based aluminum producer has curtailed 28% of its production capacity and reported a net loss of US$8.6 million for the September quarter, after adjusting for one-time items mainly related to a new power contract for its Hawesville, Kentucky, smelter. Shipments of primary aluminum for the first nine months of 2009 were 457,426 metric tons, compared with 601,511 tons for the comparable 2008 period. "Looking ahead, we note some improvement in global economic conditions and are watching closely for consistency in these data," said Logan W. Kruger, president and chief executive officer. "Demand for industrial metals has strengthened in China and in certain other developing regions, and appears to have stabilized in the developed economies. However, capacity restarts and persistently high inventory levels require us to remain cautious," Kruger said Century has operations in the U.S. and Iceland. London Metal Exchange aluminum prices closed down $14 on the afternoon kerb Tuesday at $1,984/ton, and up 28% since the start of the year. High levels of LME aluminum stocks of over 4.5 million tons, albeit much of this tied up in financing deals, continue to weigh on sentiment. -By Elisabeth Behrmann, Dow Jones Newswires; 61-2-8272-4689 elisabeth.behrmann@dowjones.com