Aluminium is in the news, certainly with the speculation surrounding GM and the governments position towards them 60 days hence.

Desjardins Securities, meanwhile forecast that base metal equities will move higher this year.

In another development, Charlie Aitken, director of Southern Cross Equities, was quoted in the Wall Street Journal as suggesting Alcoa would be a good takeover target for global miner BHP because Alcoa’s assets were cheap.

“Alcoa fits in all the BHP boxes in my view about tier one assets as well as leading global market shares,” said Aitken. “I find it highly interesting that there has been a huge volume spike in Alcoa shares and BHP has raised fresh debt capital that is almost identical in scale to Alcoa’s debt position.”

But Charles Bradford, an analyst in New York with Bradford Research, said a BHP move for Alcoa would not make sense, since there would be antitrust issues dating back nearly a decade to when Alcoa sold assets to BHP when it acquired Reynolds Metal.

Bradford also noted that metals stocks were down on Monday because of general unease at the situation at General Motors Corp , a big buyer of steel and aluminum.

“People may be feeling better today,” he said. On Monday, the Obama administration gave GM 60 days to reach deeper concessions with bondholders and the United Auto Workers union and said it would finance a court-supervised bankruptcy if the process failed to deliver deep enough savings.



CENX is as a high cost producer, highly leveraged to the price of aluminium, and, represents a good speculative play in this sector.