Print

After couple of Southeast Asian producer opened new offers or gave indication for homo-PP cargoes to Indonesia at $20-30/ton higher than last week; today, major Middle Eastern producers also lifted their prices to the country at the same range.

On an average, Middle Eastern homo-PP to Indonesia has reached $1055-1070/ton this week, based on CIF Indonesia, LC AS term. Suppliers are claiming limited availability to be the main support for such hike; however, demand does not appear to be so supportive. A converter received Saudi’s homo-PP yarn offer at $1055-1060/ton CIF Indonesia, LC AS term said, “Our supplier is willing to negotiate on deals, but we decided to skip purchases this round. We have sufficient stock while end product demand is not improving.” Several other converters have similar plan.

Meanwhile, domestic traders are complaining about sluggish buying interest despite the fact that offers in distribution market are approximately $80/ton lower than official price list from local producer. A market source explained, “The rupiah fell to multi years low and pushed local prices up. However, the recent price list from domestic maker is way above buyer’s acceptance levels, especially when monomers costs are turning south.”

Many also refused to build up stock amid unstable political condition. Therefore, this rally might not sustainable, players said, unless other regional markets show great appetite to make fresh replenishment.

Import homo-PP to Indonesia currently stand at $1055-1200/ton CIF, LC AS term.