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Local PP, PE markets in Malaysia continued to decline as the Ringgit appreciatedSince early July, the Ringgit has appreciated by approximately 12% against the US dollar. A stronger local currency typically pressures the price of commodities traded in that currency. |
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The Malaysian PP and PE markets have extended their decline, driven by the strengthening of the Ringgit and soft demand conditions. Market participants reported fresh offers from a major local producer for October delivery, reflecting further price cuts. This marks the second consecutive month of price reductions for PP and the third for PE.
The latest price list and changes are shown in the following table:
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Material |
Price List on 26 Sept. 2024 |
USD Equivalent |
Monthly Changes |
USD Equivalent |
|
Combined and Reported by CommoPlast |
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PPH film |
RM4,890 |
$1,187 |
-MYR 300 |
-$73 |
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PPH yarn |
RM4,640 - 4,890 |
$1,126 - 1,187 |
-MYR 250 - 300 |
-$61 - 73 |
|
PPH inj |
RM4,940 |
$1,199 |
-MYR 300 |
-$73 |
|
BOPP |
RM5,340 |
$1,296 |
-MYR 250 |
-$61 |
|
PPBC |
RM 4,930 - 5,000 |
$1,197 - 1,214 |
-MYR 250 |
-$61 |
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PPRC |
RM 5,240 - 5, 340 |
$1,272 - 1,296 |
-MYR 250 |
-$61 |
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HD film |
RM 4,720 - 5,170 |
$1,146 - 1,255 |
-MYR 250 |
-$61 |
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HD blow |
RM4,820 |
$1,170 |
-MYR 250 |
-$61 |
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HD inj |
RM 4,820 - 4,950 |
$1,170 - 1,201 |
-MYR 250 |
-$61 |
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HD yarn |
RM4,820 |
$1,170 |
-MYR 250 |
-$61 |
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LD film |
RM5,750 |
$1,396 |
-MYR 400 |
-$97 |
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LD inj |
RM6,050 |
$1,468 |
-MYR 400 |
-$97 |
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LD coating |
RM6,090 |
$1,478 |
-MYR 400 |
-$97 |
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LD Gen Purp |
RM5,610 |
$1,362 |
-MYR 400 |
-$97 |
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LLDPE film |
RM4,830 |
$1,172 |
-MYR 250 |
-$61 |
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All based on FD Malaysia terms Price list for 10 tons and below Exchange rates: USD 1 = MYR 4.12 |
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Since early July, the Ringgit has appreciated by approximately 12% against the US dollar, creating downward pressure on commodities priced in the local currency. The stronger Ringgit has exacerbated the situation, leaving buyers with higher-cost cargoes purchased in previous months at a disadvantage.
“The issue now is that many customers are still holding higher-cost cargoes purchased earlier, which means they are facing double losses,” said a local trader. With the dual impact of falling prices and stronger local currency, Malaysian buyers are expected to push for deeper discounts.
Adding further complexity to the market is the looming supply constraint due to Petronas' planned 45-day maintenance shutdown. Despite this expected tightening in supply, buyers may seek aggressive negotiations to average down their losses in what has become an increasingly unfavorable market environment.
Written by: Henny Sunarto
Edited by: Rochelle Nguyen
Country
Malaysia
