PMetal: Knocked down by Chinese duties waiver

PMetal dropped 36 sen to RM2.88 due to concern that its aluminium products may be affected by Chinese scrapping of export duties on aluminium bars and rods. However, the Chinese aluminium bars which have ASP of RM2300 per tonne would be hard-pressed to match the international prices of aluminium bars at RM1970 per tonne. Thus the impact on PMetal may be muted.

PMetal broke above its immediate downtrend line at RM3.15 in March and rallied to a high of RM3.50 recently. I expect PMetal to find support at the horizontal line at RM2.85.


Chart 1: PMetal's daily chart as at Apr 24, 2015_3.00pm (Source: ShareInvestor.com)


Chart 2: PMetal's weekly chart as at Apr 24, 2015_3.00pm (Source: ShareInvestor.com)

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, PMetal.