A Malaysian polyolefins producer informed SSESSMENTS.COM that the company has sold out June shipment allocation with most volume sold to the China market. Particularly for PP Homo Raffia grade, the cargoes sold at $870/ton to Vietnam market and at $850/ton to Indonesia market. All transactions were on LC at sight, CIF Main Port basis. As reported, the Vietnam market can take higher prices among other Southeast Asian countries; hence, most of the foreign producers, including themselves preferred to focus on selling to the Vietnam market. Aside from that, the producer’s June shipment allocation was mostly sold to the China market; around 60% from total quantity. Meanwhile, to the Australia market, the producer was only sold a few hundred tons. However, market talks have it that demand for import PP cargoes in Australia is quite good recently, citing that the local producer is unable to fulfil market needs.
In the upcoming month, considering the firmer feedstocks prices coupled with the producer’s expectation that Southeast Asia countries will be more active, the prices should start moving closer to around $800/ton-level for HDPE Film and around $900/ton-level for PP Homo Raffia. For Indonesia and Philippines markets, the producer hopes to see some improvements in demand around mid-June. Therefore, the overall market would improve and PE, PP prices will go up in the upcoming month. Further added to SSESSMENTS.COM, most factories in Malaysia are currently running at normal rate. However, the sales for end-products remain sluggish and no improvement observed so far.
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