CommoPlast | Article - 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.