RHB IB Sees Steady Cement Demand From 13MP Infrastructure Projects
KUALA LUMPUR, Jan 8 (Bernama) -- RHB Investment Bank Bhd expects cement demand to remain steady, supported by infrastructure projects under the 13th Malaysia Plan (13MP), which has targeted RM430 billion in gross development expenditure for the 2026–2030 period, compared with RM415 billion under the 12th Malaysia Plan.
In a research note, the investment bank said demand is likely to be sustained by ongoing and upcoming projects such as the Central Spine Road, the widening of the North-South Expressway (PLUS) and the Penang Light Rail Transit (LRT).
“There is also a strong emphasis on flood mitigation projects, as the government aims to complete 55 such projects in 2030 from 17 in 2024,” it said.
Meanwhile, RHB Investment Bank said the London Metal Exchange (LME) prices recovered from a low of US$2,300 per tonne in April 2025 to US$2,968 per tonne in December 2025, supported by recovering demand amid a 90-day delay in the United States tariff against China on Aug 12, 2025 and the US-China trade truce announced in mid-November 2025.
“For 2026, we now assume limited geopolitical risks as our base case, which should result in a gradual demand recovery for aluminium,” it said.
On the supply side, the investment bank said the global output remains tight, as China nears its 45 million tonne production cap (October 2025: 44.5 million tonnes).
Coupled with the limited smelting capacity in Europe due to the competition for electricity from data centres, LME prices will remain supported in the near term, it added.
“While there are concerns about a surplus condition due to China expanding production in Indonesia by 1.5-2.0 million tonnes in 2026-2027, we think the planned capacity may come in lower than expected due to power supply constraints,” it said.
Hence, RHB Investment Bank said its 2026 LME price of US$2,700 per tonne is under review, as key risks include raw material cost inflation, a broader economic slowdown and weaker average selling prices.
-- BERNAMA