Commodity Online
After financial institutional bail out, it is time for metal producers to get this benefit.

New York Stock Exchange listed Alcoa Inc. (NYSE:AA) is the latest company set to receive a loan valued at $50 million from the Quebec government to escape the bites of recession.

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The province had previously provided Alcoa with $228 million in loan guarantees a year ago toward a US$1.2-billion modernization project set up in Quebec.

Based in Pittsburgh Alcoa Inc. is engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined.

Canadian Press quoted the company spokesperson saying that the mining giant would have been forced to take "extreme measures" such as the closure of a series of giant aluminium potlines at the North Shore smelter without the assistance of government.

About 275 workers at Alcoa's smelter in Becancour stand to be laid off for an indeterminate period of time by the end of the month as employees refused to cut work hours to help trim costs.

Following the closure of several aluminium potlines, Alcoa’s major projects to boost capacity by 110,000 tonnes to 548,000 tonnes are to begin by the end of 2010 and will be completed in five years.

Aluminum prices are currently at US$1,426/tonne as demand particularly in the automobile and construction sectors has gone down on account of global recession.

AA gained 2.7% on Friday and 24.86% in the last 30 days on NYSE touching a 52-week high of 44.77 and 52-week low of 4.97.

Analysts recommend holding the stock and target an average price of 10.

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