CommoPlast Article

A key local producer in Malaysia has announced May delivery offers for PP and PE to the domestic market with reductions, a development that has been widely expected among customers here.

Material	Price List on 27 Apr. 2022	USD Equivalent	Monthly Changes	USD Equivalent
*Combined and Reported by CommoPlast*
PPH film	RM6,710	$1,590	-MYR 300	-$71
PPH yarn	RM6,510 - 6,610	$1,543 - 1,566	-MYR 300	-$71
PPH inj	RM6,810	$1,614	-MYR 300	-$71
BOPP	RM7,150	$1,694	-MYR 200	-$47
PPBC	RM6,670 - 6,740	$1,581 - 1,597	-MYR 300	-$71
PPRC	RM7,050 - 7,150	$1,671 - 1,694	-MYR 200	-$47
HD film	RM6,590 - 7,060	$1,562 - 1,673	-MYR 300	-$71
HD blow	RM6,790	$1,609	-MYR 200	-$47
HD inj	RM6,690 - 6,790	$1,585 - 1,690	-MYR 290	-$69
HD yarn	RM6,690	$1,585	-MYR 300	-$71
LD film	RM8,150	$1,931	-	-
LD inj	RM8,350	$1,979	-	-
LD coating	RM8,390	$1,988	-	-
LD Gen Purp	RM8,010	$1,898	-	-
LLDPE film	-	-	-	-
All based on FD Malaysia terms Price list for 10 tons and below Exchange rates: USD 1 = MYR 4.22

The depreciated Malaysian Ringgit against the US dollar coupled with the ongoing price correction across the Southeast Asia region is the primary driver behind the new price decision. However, buyers are still uninterested.

“The initial feedback is that the reductions are not large enough compared to the competitive import cargoes. Besides, the Ramadan holiday is too close, customers might only come back by mid of May,” a local trader commented.

On the other hand, news of PrefChem planning to restart its troubled petrochemical complex in May has had Malaysian market participants concerned. It is still uncertain if PrefChem would successfully bring the plant online, but the news is enough to encourage a wait-and-see stance among customers.

Domestic producer cuts May PP, PE offers in Malaysia