Malaysian PP, PE plummeted in Indonesia for December shipment

A major Malaysian producer reportedly slashes homo-PP and HDPE offers by $90/ton month on month to Indonesia for December shipment on the back of weaker upstream costs and higher competition in the region.

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

Apparently, the large reduction in homo-PP prices does not excite buyers in the country, who constantly comparing the price with other cargoes from the region that transacted at much lower levels. “Unless the supplier has no sales pressure, we think these offers might not in favor of buyers right now,” an Indonesian buyer added.

In the meantime, this is the first time the producer cuts LDPE film offers below the $1200/ton threshold this year and it appears that the recovery in the upstream ethylene costs did have some supports in limiting steeper reduction.