A local trader contacted by SSESSMENTS.COM stated that a Malaysian polyolefins producer’s offers for April delivery remain valid until next week except for certain PP grades. Last week, the producer reportedly has sold a substantial amount of PP Homo grades to the China market. Hence, the producer is no longer offering the particular grades at the moment. For buyers who need PP Homo grades probably have to make sure with the producer directly whether they still have remaining allocation or not, the trader further notified.
Unlike PP, the producer’s April delivery offers for HDPE Film, LDPE Film, and LLDPE Film C4 are still available at a stable level from the price list announced on April 1, 2020. At present, stock in the trader’s warehouse for PE remains full as the demand for the grades is weak, SSESSMENTS.COM was told. Citing that inquiries for PE are limited as most converters are only running at 50% from the normal rate amid the Coronavirus lockdown and slow sales for end-products. Additionally, production activities at the converters’ end are disturbed by the local police; they often come over to the factory to make an examination although the converters already have permissions to operate.
Further added to SSESSMENTS.COM, the trader heard that one of the trading firms had gained the green light from the Ministry of International Trade and Industry (MITI) to reopen their business, while others are still waiting for approval. From the trader’s end, if the company managed to close deals with the customers, there would be some issues regarding the delivery as they do not have permission to operate yet. In the near term, the outlook is not too positive. While in the long term, the trader hopes that the overall market would be much better by next year.
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