Malaysia market: March local PP, PE prices might hold stable to firmer

Malaysian buyers are waiting for major local producers to open fresh offers for March delivery and the current strengthening Ringgit against the US dollars gives the market an impression that new prices shall be stable. However, resilient upstream costs might support a firmer trend. 

In fact, a major local producer has expressed the intention to introduce $20-30/ton hike for March delivery, however, the final price list might change depending on the currency situation. 

“In any case, our plan is to lift prices. Production costs are higher since upstream ethylene and propylene are rising. Demand in the local market should slowly pick up in the near term in preparation for the Ramadan season,” a producer said.

Meanwhile, another producer said they would maintain PP prices unchanged while also looking to elevate PE cargoes citing better demand for this grade. “We are having some remaining PP cargoes and wish to deplete the quantity before making further decision,” a producer source added.

On the other hand, several customers claimed to have off-take extra quantity in the previous month and might inquiries for smaller allocation this time. “Demand for our end product has not completely picked up, and hence, we prefer to be cautious. It might be difficult for prices to firm up. We think the market might hold steady,” a buyer contradicts.