Malaysian producer lifted April PP, PE offers to Indonesia

Indonesian buyers reported having received fresh PP and PE offers for April loading from a key Malaysian producer with substantial increases, especially on HDPE cargoes, as supply tightens.

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

As reported earlier, the producer is planning to cut operating rates at one of its naphtha crackers in Malaysia this April, leading to reduced run rates at downstream PP and PE productions. 

“But the new offers are way above the market acceptance. Demand in Indonesia is not strong. Converters have stocked up sufficiently for the Ramadan demand, hence, are in no rush to make new purchases,” a buyer commented. 

Meanwhile, the availability of competitive Chinese PP cargoes draws buyers from higher-cost parcels. Sources said that only converters with appointed grades would accept the new offers from the Malaysian maker.