A trader and converter opined to SSESSMENTS.COM that the supply shortage in Malaysia will provide a cushion for PE and PP pricing. For this month, the company reported that the materials received from a producer are only sufficient to cover the production needs and there is no allocation to re-sell to customers. As such, the company is not offering PE and PP to the market for this month. Currently, tightness in supply is reported especially for HDPE Film and LLDPE Film C4 grades. For PP, the supply is also running low as some buyers are purchasing cargoes in bulk due to the uptrend in prices.
As reported to SSESSMENTS.COM, finished products demand from the company’s end is satisfactory since the orders from both domestic and export markets, such as Australia is ongoing. The source opined that as long as the supply in the country remains limited, there is a possibility for price to continue to increase. Likewise, demand may remain healthy as tight supply will stimulate buyers to make procurements.
