My purpose of writing this piece is for your information. I do not have a license to ask you to buy or sell any stocks.

Aluminium Co of Malaysia Bhd together with its subsidiaries are involved in the manufacture of aluminium sheets and foil products. The key business segments that the group operates are in fin stock, building products, heavy gauge foil, and specialties. The group supplies to manufacturers of air conditioner across Asia and Europe. Some of the other segments include building and construction, packaging, cables and various other industries. The company also produces other foil products such as cable foil for production of cable war, diaphragm foil and plain foil for packaging.

LB Aluminium Bhd is a Malaysia based company principally engaged in the business of manufacturing, marketing and trading of aluminium extrusions. Their product acts as a raw material for transport, construction, consumer goods, packaging as well as electrical engineering due to its lightweight, an excellent conductor of electricity and durability in nature. The company has expanded its business across Europe, North America, China, Australia, New Zealand and South-East Asia.

China has 707 million middle class people

Over the past several decades, China’s economic development has lifted hundreds of millions of people out of poverty and resulted in a burgeoning middle class. Middle class households typically have enough income to satisfy their primary needs – food, clothing, and shelter – with some disposable income for additional consumption and savings. In 2000, China’s middle class amounted to just three percent of its population. By 2018, this number had climbed to over half of the population, constituting nearly 707 million people. As a result, China has to import many products which are not easily available in China.

For example, China has to import aluminium thin sheets for food packaging and air conditioner insulation from Aluminium Co of Malaysia. China also has to import aluminium extrusion for all window and door frames from LB Aluminium.

China has increased its net import of primary and alloy aluminium to record high in the last 10 years as shown on the above chart. As a result, aluminium price has been going up every month and it has gone up 55% in the last 1 year as shown on the price chart below.