Glencore has reduced its stake in U.S. aluminum producer Century Aluminum from around 43% to about 33%, cashing in on a sharp rally in Century’s share price triggered by a surge in U.S. import tariffs. The sale, which involved roughly 9 million shares, raised about $272 million. Glencore also converted its preferred stock into ordinary shares, simplifying its position and signalling a long-term bet while realising part of its gains.

Century Aluminum, which depends heavily on Glencore for feedstock, has benefited significantly from the 50% U.S. tariff on aluminum imports. Prices for U.S.-made aluminum have soared, giving Century’s local production a competitive edge. The tariff protection has bolstered its margins and triggered investor enthusiasm, making Glencore’s timing attractive for partial exit.

Despite selling a large portion of its holding, Glencore reassured investors that it remains confident in Century Aluminum’s management and long-term prospects. The company emphasised that the move is not a complete exit but rather a rebalancing, allowing it to capitalise on current momentum while retaining exposure. For Glencore, this signals a strategic recalibration rather than retreat.

Analysts say Glencore’s decision reflects both strong market fundamentals and a desire to de-risk in an environment where trade policy can shift quickly. By locking in gains now, Glencore preserves its upside if Century continues to benefit from domestic demand, while also reducing concentration risk. The move may influence how other commodity traders adjust their large stakes in tariff-sensitive sectors.

For global corporates and investors, this story underscores how trade policy continues to reshape commodity ownership structures. It’s a reminder that tariffs don’t just affect flows — they also change how major players allocate capital and realise value in their portfolios.

Source: Reuters.