Press Metal under selling pressure as technical outlook weakens (update)

KUALA LUMPUR: The shares and warrants of Press Metal skidded on Friday on selling pressure as the technical outlook weakened.

Bloomberg reported China, the world’s largest aluminum producer, may worsen a global glut of the metal as the government scrapped export duties for some products.

The removal of fees to ship certain aluminum products may encourage further exports from the country that accounts for about half the world’s production. Global prices may sink as the move encourages producers to shift China’s aluminum glut overseas, according to Bloomberg Intelligence.

“The policy will improve China’s aluminum market by encouraging exports and reducing domestic oversupply, but will increase global aluminum supply,” said Ma Kai, a Beijing-based analyst at China International Capital Corp. “Overseas aluminum premiums will be damped, while rising Chinese exports will also have a negative impact on LME aluminum prices.”