Malaysian PP and PE tracked a stable to softer trend in Indonesia

Malaysian producers maintained a stable pricing trend for October PP and PE in the Indonesian market, with the exception of LDPE, which saw a significant $80/ton month-on-month decline. This drop is attributed to increasing supply availability, underscoring the broader weakening of LDPE prices.

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

The import LDPE film market to Indonesia has been on a downward trajectory, with other non-dutiable origins having already dipped below the $1300/ton threshold a couple of weeks ago. The steep price reduction in Malaysian cargoes was well expected, though buying ideas are still at least $50/ton below the initial price list.

Ongoing negotiations reflect diverging market interest, with PE attracting comparatively favorable response from buyers, while demand for PP, particularly homo-PP grades, appears subdued. Market participants indicate that the lack of interest in PP could signal further pricing pressure, as buyers remain hesitant to engage amid uncertain market fundamentals.

Written by: Henny Sunarto

Edited by: Rochelle Nguyen