Malaysian producer slashed May PP, PE offers to Indonesia

Indonesian players reported receiving fresh PP and PE offers from a major Malaysian producer for May shipment with $30-50/ton reduction from last month, which surprises many market participants. 

Latest price list and changes are shown in the following table:

“We were very much expecting the maker to keep the new offers unchanged from last month, especially for PP cargoes given the recent firming trend that dominates the Asia region,” a market source said. 

However, other players find the latest price cuts to be reasonable while still asking for additional discounts on PE cargoes. “May and June could be very depressed months in local Malaysia due to the General Election and the long Ramadan holidays. As a result, producers here need to deplete inventories. The latest offers are not extremely low and we are planning to take a small quantity,” a buyer added.