Major Malaysian producer cuts December offers for domestic market

In response to changes in the global market and the stronger Ringgit against the USD, a Malaysian producer slashed their monthly offers for the domestic market. The downward adjustment indicated the proactive steps the maker took to align with current market dynamics.

The producer’s latest price list and changes from the previous month are as follows:

Despite large price cuts from the principal supplier, a distributor highlighted the disappointment in sales results, stating, "Although our principal has implemented significant price reductions, the anticipated market resurgence has not materialized. Sales remain slow, with only buyers with immediate needs proceeding with purchases. Others are limiting their volumes, particularly as we approach the financial book closing."

As December unfolds, converters in Malaysia are adhering to their annual practice of refraining from stocking activities. This trend aims to minimize inventory levels on their books, contributing to the subdued market activity. 

Simultaneously, producers are adjusting their strategies to navigate the challenging market conditions by cutting operating rates to mitigate potential losses on their profit and loss statements. Over the first nine months, the producers have posted a net loss of RM593.8 million on revenue of RM5.8 billion.

These dynamics underscore the multifaceted challenges within the petrochemical industry, as distributors grapple with sluggish sales, converters adopt a cautious stance, and producers adjust operating rates to navigate the complexities of the current market landscape.