Major development projects are being flagged off across Malaysia driving the demand for building materials sector. AmInvestment Bank Bhd in their recent market study held an ‘overweight’ view of the sector which includes aluminium building materials.
According to the investment bank, key catalysts are visible and the order books are full for construction industry players in the country. Buying of building materials such as steel, cement and aluminium has increased lifting higher-than-expected average selling prices of these commodities.
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“Key catalysts that potentially boost greater demand for building materials are the infrastructure development projects earmarked under Budget 2018, in which the government is committed to spending on roads, bridges, schools, hospitals, public housing, water and electricity supply.
“These infrastructure projects will continue to further boost the demand for building materials such as steel, cement and aluminium,” the market research firm noted.
Aluminium ASP has been on the upward trend globally due to reforms in China. “Additionally, cost-push factors would cause the aluminium ASP to fluctuate,” the research firm said. “YTD aluminium ASP stands at approximately US$1,950 MT.”
Aluminium prices are expected to move in the range of US$1,950 MT and US$2,145 MT in 2018 and 2019 respectively, AmInvestment Bank projected.
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