Malaysian producer announces November PP, PE offers to Indonesia

It is reported that a major Malaysian producer has announced fresh PP and PE offers to Indonesia with up to $60/ton hike on homo-PP grades while PE is tracking lower. 

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

The hike in PP cargoes is a result of the reduced inventories pressure stemming from the healthy sales for contract business, sources said. “The producer could be building up some inventories ahead of the scheduled shutdown at one of the PP lines by end of this year,” a market player added.

In spite of the tightening supply condition for PP across the region, Indonesian buyers are very reluctant in accepting the new price list. “We also think the HDPE offers are above market acceptance levels. We expect $40-50/ton discount on deals – the same par with Thailand and Singaporean cargoes,” another buyer added.