KUALA LUMPUR: Press Metal
Aluminium Holdings Bhd expects aluminium demand to stay resilient, driven by renewable energy and new growth areas like artificial intelligence (AI) and data centres, while supply constraints continue to support prices despite global headwinds.
“Global aluminium supply constraints have supported metal prices, aided by fragile supply stability amid geopolitical risks. Furthermore, lower raw material prices are positive for our smelting operations,” group chief executive officer Tan Sri Paul Koon said in a statement.
He added that the anticipated US rate cuts and various government stimulus measures could inject optimism into global growth, further supporting demand for aluminium.
“Given aluminium’s unique properties such as light weight, corrosion resistance, thermal and electrical conductivity, non-magnetic nature, and heat dissipation, renewable energy industries along with emerging sectors such as AI and data centres, are poised to be essential demand drivers,” Koon said.
In the second quarter ended June 30, Southeast Asia’s largest aluminium smelter posted a 4.4% decline in net profit to RM483.6mil, or 5.87 sen per share, from RM505.8mil, or 6.14 sen per share, a year earlier.
Revenue, however, rose 5.9% to RM4.2bil against RM3.95bil posted last year.
In the first six months to June 30, Press Metal’s revenue increased by 7% to RM8.09bil, while net profit edged up by 3% to RM945.3mil.
Press Metal declared a second interim dividend of 2.0 sen per share, payable on Sept 29.