|
|
Domestic PP, PE offers rose sharply in Malaysia on exchange rates, supply tightness.Naphtha-based producers across Asia have been struggling with squeezed margins for months due to strong upstream costs and weak demand, which force most plants to cut run rates to protect the bottom line. |
|
The local PP and PE market in Malaysia extended the firming trend as a key producer opened September shipment offers with sharp increases from August. Tighter availability arises from deepening operating rate cuts and the depreciation of the Ringgit is blamed for the latest price rally.
The latest price list and changes are shown in the following table:
|
Material |
Price List on 30 Aug. 2023 |
USD Equivalent |
Monthly Changes |
USD Equivalent |
|
Combined and Reported by CommoPlast |
||||
|
PPH film |
RM5,430 |
$1,168 |
+MYR 300 |
+$65 |
|
PPH yarn |
RM5,130 - 5,430 |
$1,103- 1,168 |
+MYR 300 |
+$65 |
|
PPH inj |
RM5,480 |
$1,178 |
+MYR 300 |
+$65 |
|
BOPP |
RM5,830 |
$1,254 |
+MYR 400 |
+$86 |
|
PPBC |
RM5,420 - 5,490 |
$1,166- 1,181 |
+MYR 300 |
+$65 |
|
PPRC |
RM5,730 - 5,830 |
$1,232 - 1,154 |
+MYR 400 |
+$86 |
|
HD film |
RM5,490 - 5,940 |
$1,181 - 1,277 |
+MYR 300 |
+$65 |
|
HD blow |
RM5,590 |
$1,202 |
+MYR 300 |
+$65 |
|
HD inj |
RM 5,590 - 5,690 |
$1,202 - 1224 |
+MYR 300 |
+$65 |
|
HD yarn |
RM5,590 |
$1,202 |
+MYR 300 |
+$65 |
|
LD film |
RM5,520 |
$1,187 |
+MYR 300 |
+$65 |
|
LD inj |
RM5,820 |
$1,252 |
+MYR 300 |
+$65 |
|
LD coating |
RM5,860 |
$1,260 |
+MYR 300 |
+$65 |
|
LD Gen Purp |
RM5,380 |
$1,157 |
+MYR 300 |
+$65 |
|
LLDPE film |
- |
- |
- |
- |
|
All based on FD Malaysia terms Price list for 10 tons and below Exchange rates: USD 1 = MYR 4.65 |
||||
Naphtha-based producers across Asia have been struggling with squeezed margins for months due to strong upstream costs and weak demand, which force most plants to cut run rates to protect the bottom line. Lotte Chemical Titan is not an exception. The company operated at 70-75% of its operable capacity throughout the first half of the year, and market sources said the producer has now reduced utilization rates at the PP and HDPE lines further.
“As a result, some PP block copolymer grades are very short at the moment. On the other hand, we see stiff resistance from buyers toward homo-PP and HDPE cargoes because of the new supply from another producer,” said, a trader.
In the latest update, PrefChem continues to run the newly started-up HDPE and LLDPE plants at about 70% capacity but struggling to stabilize the PP units.
Several converters told CommoPlast of mediocre end-product businesses and even though the Ringgit depreciated about 1.5% in just 30 days, they are unable to transfer the rising costs fully to finished goods buyers.
Another trader added, “We are considering some minor discounts for our regular customers to smoothen the sales process, but we are in the position to absorb larger cuts.”
