Press Metal Aluminium Holdings Bhd is expected to face weaker smelting margins in the second half of 2026 as aluminium supply constraints ease, input costs rise and market sentiment shifts towards a potential surplus in 2027, according to Hong Leong Investment Bank (HLIB) Research.
HLIB Research estimates that Press Metal’s core earnings for the third quarter of 2026 will range between MYR 600 million (USD 146.85 million) and MYR 650 million (USD 159.09 million), representing a decline of 10 per cent to 17 per cent quarter on quarter, although earnings would still rise 1 per cent to 9 per cent year on year. The expected results would bring the company’s nine-month earnings to approximately 75 per cent to 77 per cent of its full-year forecast.
The projected quarterly decline reflects lower aluminium prices alongside higher raw material costs. Average spot London Metal Exchange (LME) aluminium prices are estimated at USD 3,228 per metric tonne in the third quarter, down from USD 3,564 per tonne in the second quarter of 2026. Average spot alumina prices have also increased, adding to the pressure on smelting margins.