Malaysian maker cuts September PP offers to local market, maintain PE unchanged

A key local producer in Malaysia has announced September shipment offers to domestic market with MYR 80/ton ($19/ton) reductions on all PP grades, reflecting the weakness across the region while keeping PE stable from the previous month.

The latest price list and changes are shown in the following table:

Malaysian buyers initially expected the producer to implement increases on both PP and PE grades due to the bright demand outlook as the country eases lockdown measures and manufacturing sector is ramping up operating rates.

“But overseas markets are bad. Key exporting destinations including China, Vietnam and Indonesia are not active in off-taking cargoes, hence the reduction in the local ground,” a market source commented.

Meanwhile, converters remain conservative in making large replenishments, hoping to obtain additional discounts. Apparently, end product demand slows to pick up even though the country starts to reopen from the strict movement control, as consumers refrain from going out amid the continued rising number of infection cases.