Glencore, the London-listed commodities giant, has reduced its stake in Century Aluminum, one of the leading U.S. aluminium producers, by 10%, bringing its ownership to approximately 33%. This strategic move comes after a remarkable surge in Century Aluminum’s stock, largely driven by U.S. tariffs on aluminium imports and record profits for domestic aluminium producers.

---

Glencore’s Stake Reduction and Market Movements

On November 10, Glencore sold nine million shares of its 40 million-share holding in Century Aluminum, generating approximately $272.25 million. In addition, the company converted its entire Series A Convertible Preferred Stock into 4.95 million ordinary shares, as revealed in recent U.S. regulatory filings.

This transaction reduces Glencore’s total holding to around 36 million shares, down from 43% previously, marking a significant adjustment in its decades-long investment in Century Aluminum. The commodity trading and mining powerhouse has maintained a stake in Century for nearly 30 years, emphasizing the long-term strategic relationship between the two companies.

---

U.S. Aluminium Tariffs and Their Market Impact

The sharp rally in Century Aluminum’s stock, which has risen approximately 80% since June, is largely attributed to the doubling of U.S. aluminium tariffs by President Donald Trump on June 4, 2025. The 50% tariff on imported aluminium aimed to stimulate domestic production and encourage investment in U.S.-based aluminium facilities.

These tariffs have led to soaring aluminium prices in the U.S., benefiting producers like Century Aluminum. Investors reacted positively, recognizing the enhanced profitability for domestic smelters as the cost of imports increased, thereby boosting local market competitiveness.

---

Confidence in Century Aluminum’s Management

Despite reducing its stake, Glencore affirmed its confidence in Century Aluminum’s management team. In regulatory statements, Glencore highlighted that its decision to sell a portion of its shares was part of a strategy to “monetize” part of its investment while maintaining a significant position in the company.

Century Aluminum is the largest primary aluminium producer in the United States, producing 690,000 metric tons of aluminium last year. This aluminium is widely used in construction, packaging, and the power sector, highlighting the critical role the company plays in the U.S. industrial ecosystem.

---

Aluminium Supply and Pricing Dynamics

The United States continues to rely heavily on aluminium imports, which reached nearly 3.94 million tons last year, according to Trade Data Monitor. For international producers to continue exporting aluminium to the U.S., the prices must account for the high tariffs, making domestic production increasingly competitive.

On the commodity market, aluminium prices have climbed substantially. On November 3, the London Metal Exchange (LME) aluminium price touched $2,920 per metric ton—the highest since May 2025—due to tight market conditions. Simultaneously, the U.S. Midwest premium surged to a record 88.21 U.S. cents per pound, or approximately $1,944 per ton, further reflecting the premium costs in transporting and supplying aluminium to American buyers.

---

Long-Term Implications for Investors and the Aluminium Market

Glencore’s partial divestment from Century Aluminum signals a strategic shift in portfolio management while retaining faith in the long-term growth of the U.S. aluminium industry. For investors, the U.S. aluminium market continues to present opportunities due to tariff-induced profitability and supply constraints.

Century Aluminum’s position as a leading domestic producer, combined with Glencore’s continued involvement, underscores the importance of aluminium in the U.S. industrial supply chain and highlights the interplay between global trade policies and commodity markets.