A Malaysian trader informed SSESSMENTS.COM that buyers in the country rushed to purchase PE cargoes, hence, all PE allocation on the trader’s end has been sold out. Deals were concluded at the initial offer levels or at the same levels as the local producer’s price list because buyers did not bother bargaining considering the tight supply. As for PP, the trader still has some remaining cargoes available for PP Homo Raffia and PP Block Copolymer since buyers did not procure PP as aggressively as PE due to relatively better supply.
Even so, the trader told SSESSMENTS.COM that demand for PE and PP in Malaysia is equally robust at the moment. Most converters’ sales are reviving as new orders are flowing in. The production rates are mostly at 80-90% of the normal rate and some converters intend to increase to full capacity in the near term. Considering the situation, the trader opined that demand for PE and PP in Malaysia will continue to improve while supply is expected to remain tight. Therefore, PE and PP prices will remain firm, the trader added.
