Malaysian PP, PE announced with sharp reductions in Indonesia

A key Malaysian producer has opened January shipment offers for both PP and PE to the Indonesian market with substantial decreases from December, marking the second consecutive month of decline.

The producer’s latest price list and changes month on month are shown in the following table:

Surprisingly, responses from the market are rather positive. Buyers commented that the new offers are very much in-line with the current market levels, which is a rare move from the maker. 

“We plan to take some homo-PP cargoes since it is acceptable. We think the weak local demand in Malaysia forces the producer to significantly step back on the price list. For other grades, we might wait for a clearer direction before making decisions,” a buyer added.