Local PE offers on 30 days credit term, FD Malaysia basis and excluding 6% SST
SSESSMENTS.COM was informed that Malaysian buyers are eager to secure a certain PE grade from a local producer. The buyers even said that price does not matter. A trader in the country explained that most buyers usually use HDPE Film from the producer for production and do not want to switch to material from other producers despite lower prices to ensure there are no issues with production quality and factory machines. Hence, although HDPE Film offers from the producer increased between MYR180-200/ton ($41-46/ton) on a monthly comparison, buyers’ responses were still very good as the buyers wanted to secure the material quickly considering the reduced allocation from the producer. “All of our allocations have been fully booked,” the trader stated.
As for LDPE Film, the trader told SSESSMENTS.COM that the responses from buyers were not as good as for HDPE Film. Offers for this grade increased by MYR100/ton ($23/ton), but demand is not strong. No deals were concluded so far. Regarding the operating rate of converters in the country, the trader informed that most are running at 60-70% of the normal rate since orders for the finished products remain limited. Thus, in the next two months, the trader does not expect to see significant improvements in demand.
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Tags: Asia Pacific,English,Malaysia,News,PE,SEA
Published on May 29, 2020 2:38 PM (GMT+8)Last Updated on May 29, 2020 2:38 PM (GMT+8)
