AMRESEARCH Sdn Bhd continues to like Press Metal Bhd (8869) for its reaction to an acceleration in aluminium prices amid an improving demand and supply imbalance.
Phase 1B of Press Metal's Mukah smelter that would double its capacity to 120,000 tonnes kicked-off last month, ahead of final negotiations for additional power supply from Sarawak Energy, which should be concluded by month-end.
Coupled with the rising proliferation of aluminium-backed Exchange Traded Fund proposals, the research house gathers that the expansion moves by leading aluminium producers such as Rio Tinto Alcan may hint at improving prospects for the aluminium industry moving into 2011.
As it is, benchmark aluminium prices on the London Metals Exchange have firmed up by 27 per cent to US$2,353 (RM7,364) a tonne against a low of US$1,857 (RM5,812) a tonne back in June 2010.
Coupled with the rising proliferation of aluminium-backed Exchange Traded Fund proposals, the research house gathers that the expansion moves by leading aluminium producers such as Rio Tinto Alcan may hint at improving prospects for the aluminium industry moving into 2011.
As it is, benchmark aluminium prices on the London Metals Exchange have firmed up by 27 per cent to US$2,353 (RM7,364) a tonne against a low of US$1,857 (RM5,812) a tonne back in June 2010.
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