2011 Could Be a Big Year for Alcoa

Includes: AA, ACH, RIO
by: Benzinga

By Roger Nachman

Alcoa Inc. (NYSE:AA) is slightly up in pre-market trading, but the bigger move here is for 2011 when analysts expect aluminum demand to rise sharply.

Alcoa, being one of the world's largest producers of aluminum, could very well be a huge beneficiary of the increased demand, and shareholders should benefit handsomely.

Stockcall.com writes:

"Aluminum producers like Alcoa Inc. are looking to 2011 positively, as a number of beneficial influences could be poised to improve the industry outlook. The supply and demand equation has been trending to demand dominance recently, as China has curbed production for environmental reasons. The growing middle classes of India and South America are also stretching supplies, as construction and the number of individuals driving automobiles is increasing fast."

Other companies to consider are Rio Tinto (NYSE:RIO), as it owns Alcan, another large aluminum producer, as well as Chinalco (NYSE:ACH), which is China's largest aluminum producer.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.