Domestic producers announce February PP and PE offers with further increases

02-Feb-10

Players in Malaysia report that domestic producers have announced their February PP and PE offers with further increases from the late January offer levels as per Chemorbis, triggered by higher production costs along with limited availability. These elevated offers have not been accepted by the converters, as buyers prefer to defer buying in anticipation of a price correction after the Chinese New Year holidays. As compared to January offers, initial February offers were reported with increases of US$62/ton for homo-PP injection and raffia, US$91/ton for PP film and at US$120/ton for copolymer PP. Offers for domestic PP are currently being reported at US$1390-1410/ton for homo-PP injection and raffia, US$1460-1469/ton for PP film and at US$1513/ton for PP block copolymer, all on an FD Malaysia, cash equivalent basis. As compared with January offers, initial February offers were reported with increases of US$117/ton for LDPE film, US$44/ton for LLDPE film and US$29/ton for HDPE film. Offers for domestic cargoes are currently being reported at US$1642-1654/ton) for LDPE film, US$1531/ton for LLDPE film and at US$1387-1425/ton for HDPE film, all on an FD Malaysia, cash equivalent basis.