KUALA LUMPUR: The outlook for the building materials sector is turning more favourable on expectations that aluminium and steel prices are likely to inch up, while cement prices are expected to hold steady.
AmInvestment Bank Research, which has upgraded the sector to “neutral” from “underweight, ” sees a mild recovery in aluminium price to US$1,600 per tonne in the second half of this year compared to US$1,528 per tonne in the second quarter of 2020.
For the 2021 forecast, AmInvest Research has forecast aluminium prices to improve slightly to US$1,700 per tonne, assuming that rising demand from aluminium consuming industries would gradually run down the aluminium inventory build-up.
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