CommoPlast

Local PP, PE market in Malaysia tracks stable to softer trend on subdue demand

insight 30 Jun 2022

Local PP, PE market in Malaysia tracks stable to softer trend on subdue demand


Fresh PP and PE offers for July delivery from a key local producer in Malaysia were announced on the stable to softer trend earlier this week despite the depreciation of the Malaysian Ringgit against the US dollar. The persistently weak demand condition coupled with the renewed falling trend in the import ground is attributed to the price decisions.

The latest price list and changes are shown in the following table: 

Material

Price List on     28 June 2022

USD      Equivalent

Monthly     Changes

USD Equivalent

Combined and Reported by CommoPlast

PPH film

RM6,310

$1,434

-

-

PPH yarn

RM6,110 - 6,210

$1,389 - 1,411

-

-

PPH inj

RM6,360

$1,445

-

-

BOPP

RM6,750

$1,534

-

-

PPBC

RM6,270 - 6,340

$1,425 - 1,441

-

-

PPRC

RM6,650 - 6,750

$1,511 - 1,534

-

-

HD film

RM6,090 - 6,560

$1,384 - 1,491

-

-

HD blow

RM6,190

$1,407

-MYR 100

-$23

HD inj

RM6,190 - 6,290

$1,407 - 1,430

-

-

HD yarn

-

-

-

-

LD film

RM7,650

$1,739

-MYR 200

-$45

LD inj

RM7,850

$1,784

-MYR 200

-$45

LD coating

RM7,890

$1,793

-MYR 200

-$45

LD Gen Purp

RM7,510

$1,707

-MYR 200

-$45

LLDPE film

-

-

-

-

All based on FD Malaysia terms

Price list for 10 tons and below

Exchange rates: USD 1 = MYR 4.40

 

Apparently, the producer only agreed to reduce PE prices to reflect the recent nosedive in the upstream ethylene costs, however, players are watching out for the emergence of competitive import PP cargoes, which might pressure the domestic market.

Meanwhile, real demand in the local Malaysia market has been dwindling in recent weeks as inflation hit consumption at home and overseas. Malaysian customers are holding their breaths to wait for the comeback of PrefChem, whose cargoes are expected to emerge this July.