Kuala lumpur: RHB Investment Bank Bhd anticipates a steady demand for cement, bolstered by infrastructure projects outlined in the 13th Malaysia Plan (13MP). The plan targets RM430 billion in gross development expenditure for the 2026-2030 period, an increase from the RM415 billion set in the 12th Malaysia Plan.

According to BERNAMA News Agency, the investment bank's research note highlighted that 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) are expected to maintain demand levels. Additionally, there is a focus on flood mitigation efforts, with the government aiming to complete 55 projects by 2030, up from 17 in 2024.

Meanwhile, RHB Investment Bank observed a recovery in London Metal Exchange (LME) prices, rising from a low of US$2,300 per tonne in April 2025 to US$2,968 per tonne by December 2025. This recovery was supported by a delay in the United States tariff against China in August 2025 and a trade truce between the US and China announced in November 2025.

RHB Investment Bank predicts a gradual aluminium demand recovery in 2026, assuming limited geopolitical risks. On the supply front, global output remains tight as China approaches its 45 million tonne production cap, reaching 44.5 million tonnes by October 2025. Additionally, limited smelting capacity in Europe due to electricity competition from data centres is expected to support LME prices in the near term.

Concerns about a potential surplus condition arise from China's planned production expansion in Indonesia by 1.5-2.0 million tonnes in 2026-2027. However, RHB Investment Bank suggests that actual capacity might fall short due to power supply constraints. Consequently, the bank is reviewing its 2026 LME price forecast of US$2,700 per tonne, considering risks such as raw material cost inflation, economic slowdown, and weaker average selling prices.