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Malaysian converter receives lower LLDPE offer from local producer

by ChemOrbis Editorial Team -
  • 22/12/2016 (14:30)
A converter operating in Malaysia reported that they received lower prices for LLDPE c4 film from a local producer this week.

The converter said, “Our supplier offered LLDPE film this week at MYR5590/ton ($1249/ton) FD Malaysia, cash; MYR160/ton ($26/ton) lower from last week. We are not going to build more inventories after Chinese New Year since February will be a slower month for us in terms of demand. However, we think that demand will improve in March and April.”

“Our supplier told us that the next announcement will come with increases given the depreciated currency and they informed us that their LLDPE shipment will be slow,” he added.

The converter also mentioned currency rate issues in the local market and pointed to it as the main concern of Malaysian market players. “Depreciation of the local currency is an advantage for exporters while it is bad news for local producers as it causes higher raw material costs,” he commented.
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