A Malaysian converter revealed to SSESSMENTS.COM the company’s operating rate following the permission granted by the government. As the Malaysian government declined the converter’s permission to run at 70%, the company’s is still running at 50% from the normal operating rate. The converter stated that some customers are still running at 50% as well, while other factories remain shut until this week. In general, business in Malaysia remains slow. For PE and PP cargoes, the converter did not receive any fresh local offers for both HDPE Film and PP Homo Raffia cargoes this week. However, the converter does not have the intention to purchase cargoes either as sales remain slow.
“We think the market will remain slow in the near term. Moreover, there is still a possibility for polymer prices to move even lower considering the low crude oil prices. We also think that the low crude oil prices will have a bad impact on the Malaysia economy, as Petronas will have less tax contribution to the government this year. Hence, the outlook remains pessimistic,” the converter explained to SSESSMENTS.COM.
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Tags: Asia Pacific,English,Malaysia,News,PE,PP,SEA
Published on April 24, 2020 4:22 PM (GMT+8)Last Updated on April 24, 2020 4:22 PM (GMT+8)
