Citi Flags Near-Term Risks for Press Metal From Power Cuts, Softer Demand
Citi keeps a buy rating on Press Metal Aluminium with a 10.60 ringgit target, citing power curtailments and softer demand as near-term risks.
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what happened
Recent weakness in Press Metal Aluminium shares may reflect worries about uncertainty in Indonesia, temporary power curtailments and weaker aluminum demand, according to a note from Citi analyst Ryan Davis, as reported by Market Talk.
The most immediate risk is a reduction in power supply. If the curtailments last a quarter, annual output could fall by 0.75% and net profit by about 1.4%. Additional use of scrap metal may partly offset the effect.
Slower demand from China and higher interest rates could weigh on aluminum prices in the near term. Davis remains cautiously positive on the metal into 2027, citing low inventories and demand from electrification, AI and power infrastructure. Citi maintains a buy rating with a 10.60 ringgit target price. At the time of reporting, the shares were up 0.9% at 6.74 ringgit.
why it matters
For aluminum producers, two factors matter most: output volumes, which depend directly on power supply, and metal prices, which are influenced by China and interest rates. Citi's view pairs near-term caution with expectations of price support from low inventories.
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- Press Metal Aluminium Face Near-Term Risks From Power Cuts, Softer Demand — Market Talk, 20 October 2026 at 02:24 UTC
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