Malaysian producer announces October PP, PE offers to local market

A major Malaysian producer has opened October delivery offers for both PP and PE to the local market, mostly at the stable to lower levels compared to last month despite the recent firming trend in the import ground.

The producer’s latest price list and month-on-month changes are shown in the following table:

Demand condition in local Malaysia has been sluggish over the past week following a brief pick up during mid of the month due to the feedstock supply disruption in Saudi Arabia. Traders informed that buyers negotiate fiercely to obtain larger than usual discounts amid expectation that local supply would soon become ample.

“New supply from PrefChem might become available in the local market in the coming month. Competition is getting intense, giving buyers an upper hand in negotiation. Customers prefer to only buy small quantity while waiting,” a trader said.