This will be achieved on the back of normalisation of operations with 100% workforce capacity, elevated average selling prices (ASPs) and resilient demand. In a report, Kenanga Research estimated that plastic players operated at a utilisation rate of 65% to 75% in Q4, versus 55% to 60% in Q3. Some of the plastic players have orders up to the first quarter of 2022. Logistic disruptions and the electricity crisis in China were the main reasons driving resin prices sharply higher for the period. As resin prices rose significantly, plastic players have adjusted their ASPs across products, passing through the higher cost to customers.

Source: The Star December 31, 2021 13:51 UTC