A Malaysian trader obtained extra volume from a local producer after sold-out PE cargoes, SSESSMENTS.COM was told. The trader has managed to sell all allocations for HDPE Film and LLDPE Film C4 as the volume is quite limited. Yet, there are lots of customers who are still inquiring materials from the trader. Attempting to fulfil customers’ needs, the trader asked a Malaysian producer for more allocation and eventually obtained some volume for LLDPE Film C4 from the producer. As the amount is extremely limited, the trader decided to raise the offers for local LLDPE Film C4 cargoes by MYR200/ton ($47/ton) as compared to the producer’s June delivery price list. At the moment, the Malaysian market is having low supply for HDPE Film and LLDPE Film C4. The trader was notified by their customers that buyers who inquired for those grades will only get a small volume, not the full quantity they asked.
As reported to SSESSMENTS.COM, demand for HDPE Film and LLDPE Film C4 cargoes in the Malaysia market is indeed strong as most converters increase their production rate. However, for converters who are using HDPE Film and unable to get full quantity from the local producer are likely to keep their production rate low rather than replacing the materials to be able to run at a higher rate. The trader further explained that if the materials are replaced, there would be lots of wastage in the production; therefore, those converters prefer not to take the risk.
Unlike other PE grades, the trader further added to SSESSMENTS.COM that demand for LDPE Film in the domestic market is rather slow. The trader has yet to sell out allocation for LDPE Film so far. But now, the trader is offering local LDPE Film cargoes at MYR100/ton ($23/ton) higher than last week’s level as the remaining volume is not that much.
