Malaysia Imposes Provisional ADDs on PET Imports

Key Takeaways

• PET Pricing Update: Reliance PET: Rs. 93,000/MT (Bhiwandi & Mundra). Wankai 801: Rs. 86,500/MT (Bhiwandi & Mundra). China: Bottle-grade PET at 6,300 RMB/MT
• Malaysia’s Anti-Dumping Duties: ADDs on PET imports from China (6.33%-37.44%) and Indonesia aim to protect local producers. Indonesian exporters face higher restrictions, potentially creating supply gaps.
• Impact on Supply and Demand: Domestic PET supply likely to stabilize, but downstream sectors may face increased costs.
• Polymer Industry Updates: Production issues reported at major facilities like Naphtachimie, Borealis, and Formosa Plastics. Advances in bioplastics are reducing single-use plastics.
• Expert Insight: Short-term ADDs support local PET prices but could increase costs for buyers. Final rulings by Malaysia’s MITI will shape the future of PET market dynamics.

Latest PET Prices 

• The current rates for PET are as follows: Reliance is priced at Rs. 93000/MT for both Bhiwandi and Mundra locations, while Wankai 801 is available at Rs. 86,500/MT for the same locations
• The domestic price for bottle-grade PET in the Chinese market is currently 6,300 RMB/mt.

PET Demand and Supply: Impact of Malaysia’s Anti-Dumping Duties

• Malaysia's imposition of provisional anti-dumping duties (ADDs) on polyethylene terephthalate (PET) imports from China and Indonesia aims to protect the domestic PET industry. 
• The duties, ranging from 6.33% to 37.44%, are expected to moderate the inflow of PET from these two countries, which have been significant suppliers. 
• However, the impact on China's PET exports is likely to be minimal, as Malaysia does not constitute a major market for Chinese PET.
• Domestically, PET supply is anticipated to stabilize as the measures aim to curb competitive pressure from lower-cost imports. The duties create an opportunity for Malaysian producers to cater to local demand without being undercut by foreign imports. 
• For Indonesian PET exporters, the higher duty rate of 37.44% may effectively limit their presence in the Malaysian market, potentially creating a temporary supply gap.
• On the demand side, downstream sectors relying on PET, such as packaging, may experience slight cost escalations due to reduced import options. Businesses dependent on PET imports from China and Indonesia might shift to local suppliers or explore alternative markets, potentially affecting overall market dynamics.

Polymer News: Production Issues at Major Facilities

• Naphtachimie experiences production issues at its Cracker on 8th January 2025. The Cracker is located in Lavera, France with a Propylene production capacity of 515,000 Tons/Year, and an Ethylene capacity of 740,000 Tons/Year.
• Borealis has declared a Force majeure on the supplies of HDPE pipe grade on 3rd January 2025 from its plant located in Stenungsund, Sweden. The plant has a production capacity of 260,000 Tons/Year.
• Formosa Plastics Corp (FPC) is operating its Acrylonitrile (ACN) Plant at 90% of the actual capacity from 7th January 2025. The plant is located in Mailiao, Taiwan with a production capacity of 280,000 Tons/Year.
• China standard thermoplastics December: Quotations mostly trend lower or increase only for LLDPE, PP copolymers / Upcoming Spring Festival to dampen demand considerably.
• Sulzer Chemtech’s licensed PLA technology is in use at PLA facilities worldwide. It is used in applications such as packaging and disposable utensils, helping to reduce reliance on single-use plastics, the company said. 
• The expected volume of bioplastic material produced at the planned site is enough to replace approximately 3.2 bn plastic bottles while reducing CO₂ emissions by over 300,000 t annually, said Emirates Biotech.

Expert Opinion

• In the short term, the provisional duties are expected to support domestic PET producers by reducing import competition and stabilizing local market prices. However, downstream buyers could face higher procurement costs, leading to cautious purchasing behavior.
• The duties, effective until 6 May 2025, may prompt adjustments in import strategies, with buyers diversifying supply sources beyond China and Indonesia. The final determination by Malaysia’s Ministry of Investment, Trade, and Industry (MITI) will be a critical factor in shaping long-term market trends.