Malaysian makers of plastic packaging Thong Guan, SLP Resources expect slower Q1 on sluggish orders, but 2011 has been strong; plastic resin prices down to US$1,300/tonne now, from US$1,380/tonne in June, SLP says
October 31, 2011
– Plastics packaging demand is expected to be strong in the fourth quarter and then decline in first-quarter 2012, said two manufacturers of plastics packaging in Malaysia, reported The Star on Oct. 31.
The Wenzhou financial troubles in China will undercut the market for plastic packaging in China and the region early in 2012, said Datuk Ang Poon Chuan, group managing director for Thong Guan Industries Bhd, the largest exporter of plastics to Japan.
Weak demand for industrial packaging materials is expected to reduce domestic markets as well, although this year will be better than 2010, he said, The Star reported.
The company plans to counteract this falloff in regional demand by increasing sales to Australia, New Zealand and the Middle East to account for 20% of its total revenue contribution, compared with 15% in 2011, said Ang.
By the end of this month, Thong Guan planned to start up two new production lines that will increase the group’s annual production by 10,000 tonnes, to reach 110,000 tonnes, reported The Star.
Diminished consumer confidence in the global economy is expected to put a damper on the market in first-quarter 2012, forecasts plastics packaging producer SLP resources Bhd.
However, fourth-quarter 2011 demand is robust due mostly to the approaching Christmas season, with demand stable from Australia, New Zealand, Japan and Europe, said Kelvin Khaw, group managing director.
Plastics resin prices have fallen to US$1,300 from $1,380/tonne in June, he said, adding that prices were not as much of an influence on the market as the need for plastics packaging materials for the upcoming holidays, The Star reported.
The primary source of this article is The Star, Petaling Jaya, Malaysia, on Oct. 31, 2011.