Press Metal Aluminium Holdings is still benefiting from a tight aluminium market in 2026, but cooling prices and a potential supply surplus in 2027 are making the outlook more balanced.
The aluminium rally that helped lift expectations for Press Metal Aluminium Holdings Bhd is beginning to lose some of its momentum.
Hong Leong Investment Bank (HLIB) remains positive about the company’s underlying fundamentals but believes much of Press Metal’s benefit from elevated aluminium prices has already been reflected in the market. With aluminium prices now easing and the market potentially moving into surplus next year, the risk-reward picture is becoming less one-sided.
HLIB has therefore retained its ‘Hold’ rating on Press Metal while lowering its target price to MYR 8.34 from MYR 8.77.
he biggest change for Press Metal has been the movement in aluminium prices.
Following the initial US-Iran peace deal, LME aluminium prices came under pressure, falling from a recent peak of around USD 3,800 per tonne to approximately USD 3,200 per tonne.
HLIB expects prices to remain relatively steady from here, although the market is already looking beyond the current supply deficit towards a potentially more balanced 2027.
The aluminium market is expected to remain in a deficit of around 2 million tonnes throughout 2026, partly because conflict-related disruptions removed approximately 3 million tonnes of supply from the market.
That tightness has supported aluminium prices and, in turn, benefited producers such as Press Metal.
But the situation could look quite different next year.