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Major Malaysian producer cuts August PP and PE offers amid weak local demandMarket insiders were unsurprised by the reduction, citing weak local demand and the ongoing price corrections across Asia. Consequently, responses have been rather lukewarm. |
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A major Malaysian producer has announced a reduction in August PP and PE shipment offers to the local market, cutting prices by MYR 200/ton. This downward adjustment aligns with the broader trend of price corrections across Asia and reflects persistently weak demand within Malaysia.
The latest price list and changes are shown in the following table:
|
Material |
Price List on 29 Jul. 2024 |
USD Equivalent |
Monthly Changes |
USD Equivalent |
|
Combined and Reported by CommoPlast |
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|
PPH film |
RM5,590 |
$1,205 |
-MYR 200 |
-$43 |
|
PPH yarn |
RM5,290 - 5,590 |
$1,140 - 1,205 |
-MYR 200 |
-$43 |
|
PPH inj |
RM5,640 |
$1,216 |
-MYR 200 |
-$43 |
|
BOPP |
RM6,090 |
$1,313 |
-MYR 200 |
-$43 |
|
PPBC |
RM 5,680- 5,750 |
$1,224- 1,239 |
-MYR 200 |
-$43 |
|
PPRC |
RM5,990- 6,090 |
$1,291 - 1,313 |
-MYR 200 |
-$43 |
|
HD film |
RM5,320 - 5,770 |
$1,147 - 1,244 |
-MYR 200 |
-$43 |
|
HD blow |
RM5,420 |
$1,168 |
-MYR 200 |
-$43 |
|
HD inj |
RM 5,420- 5,520 |
$1,168 - 1,190 |
-MYR 200 |
-$43 |
|
HD yarn |
RM5,420 |
$1,168 |
-MYR 200 |
-$43 |
|
LD film |
RM6,750 |
$1,455 |
-MYR 200 |
-$43 |
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LD inj |
RM7,050 |
$1,519 |
-MYR 200 |
-$43 |
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LD coating |
RM7,090 |
$1,528 |
-MYR 200 |
-$43 |
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LD Gen Purp |
RM6,610 |
$1,425 |
-MYR 200 |
-$43 |
|
LLDPE film |
RM5,430 |
$1,170 |
-MYR 200 |
-$43 |
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All based on FD Malaysia terms Price list for 10 tons and below Exchange rates: USD 1 = MYR 4.64 |
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Market insiders were unsurprised by the reduction, citing weak local demand and the ongoing price corrections across Asia. Consequently, responses have been rather lukewarm. A trader highlighted that the producer's offers remain on the higher end of the market spectrum despite the price cuts. "Even after the price cuts, the producer's offers are still at the high side of the market. Demand in Malaysia has been soft due to the off-peak season. It would be challenging to convince customers to accept the new offers," the trader noted.
The prolonged period of demand softness, coupled with increased competition and strong upstream costs, has continued to compress production margins for petrochemical plants. This underscores the ongoing challenges for producers in maintaining profitability amid an unfavorable market environment.
Additionally, reports indicate that the producer has lowered operating rates to protect its bottom line following a major maintenance shutdown in the second quarter of the year. As a result, spot availability from the producer is limited. Market participants may anticipate an intense tug-of-war between sluggish demand and the limited sales pressure from the supplier.
Written by: Henny Sunarto
Edited by: Rochelle Nguyen
Country
Malaysia
