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.
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.
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.
Daniel Miller has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.