Press Metal falls 3.39% on the back of low aluminium prices

Press Metal Bhd ( Financial Dashboard) shares dropped 10 sen or 3.39% to RM2.85 this morning on the heels of a drop in prices of the aluminium futures contract as it is being weighed down by growing supplies.

At 12.30pm, a total of 3.18 million shares were traded. Press Metal (fundamental: 0.95; valuation: 2) shares reached a high of RM2.98 and a low of RM2.84.

Reuters reported today that metal prices are trading lower as the stronger US$ adds pressure on base metals.

The three-month future contract for aluminium traded at US$1,817 on Monday, the lowest since April 24.

It traded at US$1,820 compared to US$1,853 last Friday.

The current prices of aluminium are below producing costs outside China, which could persuade producers to slash capacity.

Reuters said ample supplies of aluminium can be seen in the contango, or discount, of US$36 a tonne for the cash contract over the three-month futures.

Press Metal runs an aluminium smelting and extrusion facility which produces ingots, billets as well as fabricated products like windows, doors, curtain wall cladding for high-rise buildings and apartments, among others.

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