Century Aluminum restarts Iceland smelter ahead of schedule

The restart is more important as a signal of operating discipline than as a near-term earnings event: the market already prices a large amount of recovery, so the incremental upside from returning idled tons is modest unless it proves the repair can hold through the next maintenance cycle. The real second-order effect is on regional pricing power — every stable increment of Nordic primary supply reduces import reliance into Europe and slightly caps the ability of higher-cost smelters to push through price. That said, the fall installation of permanent transformers creates a clear binary risk window where any slip would reintroduce outage premium into the name.

For CENX, the cleaner setup is not the restart itself but the combination of improved utilization, higher U.S. billet premiums, and the staged Mt. Holly expansion. If these three levers persist into year-end, EBITDA should become more convex than consensus expects because aluminum businesses re-rate quickly when realized premiums outrun input costs. The market may still be underappreciating how much of the current equity value is now tied to execution quality rather than spot aluminum, which makes operational miss risk more relevant than commodity beta.

RIO’s exposure is more indirect: it benefits if elevated U.S. premiums and constrained import flows support wider regional arbitrage, but the upside is limited because this is a localized price dislocation, not a global demand shock. The contrarian angle is that the current optimism around CENX may already reflect a near-perfect restart plus premium tailwind; if premiums normalize or power costs tick up, the equity could de-rate faster than industrial peers. In other words, the setup favors owning the cash-flow improvement in the commodity spread, not chasing the stock after a 12-month vertical move.