Malaysia PP and PE trended higher in Indonesia as tighter availability outweighed soft demand

Malaysian PP and PE offers remained on the stable to firmer track for the second consecutive month as the supplier shrugged off the challenges posed by the currency exchange to focus on the reduced supply conditions. Negotiations are ongoing, though sources believed that regular buyers of certain grades would procure a small quantity to ensure a safe inventory level.  

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

The Southeast Asian PP and PE market has been grappling with tighter availability in recent weeks, attributed to several ongoing and planned plant shutdowns across the region. These disruptions have overshadowed the impact of weakening Asian currencies, which have made imports more costly.

“We purchased some PP thermoforming cargoes from Thailand last week but are now taking a cautious approach,” commented a buyer. “While we’re aware of the constrained supply, weak demand for end products makes it too risky to accumulate stocks at this point.”

Producers across Southeast Asia have maintained a firm stance on import offers to Indonesia, supported by shutdowns in Vietnam, Thailand, and the Philippines. However, there is little evidence of panic buying among buyers. Import discussions in Indonesia have reached a standstill, with significant market movement expected only if either sellers or buyers adjust their positions to current conditions.

Written by: Rochelle Nguyen