Malaysian buyers expected lower PP, PE prices as the Ringgit strengthened

As major producer in Malaysia plan to announced local offers for June delivery PP and PE cargoes, buyers in the country are expressing expectation for some reduction as a result of strengthening Ringgit and softer demand condition. Many are calling for MYR100-200/ton ($23-47/ton) cut from last month.

A converter reported to have received couple of last minute orders for end product said, “Besides, demand shall be weaker during the fasting month, which might also support softening trend in raw material prices. Both local makers have recovered from the previous production issues and are able to delivery cargoes this month regularly.”

Other buyers are pointing to a considerable drop in import market as a pressure point to domestic producers. A trader said, “Singaporean producer has slashed June shipment offers and this could encourage domestic makers to march the trend. We are now on the side-line waiting for new prices before making any decision.”