NewsSSESSMENTS: Domestic PE PP Supply Issue Expected To Persist, Malaysian Traders Seek Import Cargoes

As PE and PP supply issue in the country expected to persist, Malaysian traders seek import cargoes, a local trader and distributor informed SSESSMENTS.COM. According to the source, this week, demand for HDPE Film and LLDPE Film C4 is quite healthy. However, no improvement was seen for LDPE Film demand. More added, currently, HDPE Film converters in Malaysia have yet to run at normal rates, while LLDPE Film C4 converters are mostly running at full capacity. On the supply side, the overall PE and PP supply in Malaysia is tight. HDPE Film cargoes at the source’s end will remain tight next month as the company still have backlogs to solve. As for PP, the source seared that PP supply in the country is also tight since the leading Malaysian polyolefins producer postponed the startup of its polymer units. Due to this, tight supply for PE and PP expected to persist in the upcoming month; hence, some traders have started to seek import cargoes.

In terms of pricing, this week, the source did not quote any fresh local offers as the company has sold out LDPE Film and LLDPE Film C4 cargoes in the previous week. At the moment, the source is waiting for July delivery offers from a local producer, which expected to come out with increases compared to June delivery. However, no hint yet regarding the increment. Likewise, no fresh local offers yet for PP cargoes, but the source believes that July delivery offers for PP Homo Raffia from the producer should at least increase by MYR300/ton ($70/ton) from June delivery, as stated to SSESSMENTS.COM.

Tags: Asia Pacific,English,Malaysia,News,PE,PP,SEA