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As demand in local Indonesia persist on the weak side while supply is piling up amid import arrival and smooth domestic production; a major local producer decided to slash homo-PP offers by $60-70/ton from initial price list earlier this week to conclude deals at $1170-1160/ton without VAT, FD Eastern Java, cash term for April delivery.

A good number of deals are reported at this level since it is relatively more competitive than import offers for ASEAN origin. A buyer bought the cargoes commented, “Buyers would therefore continue to pressure import offers for non-dutiable cargoes. As a result, sentiment in the Indonesia PP market might remain weak in the coming days.”

Another trader added, “Local demand has been very sluggish over the past couple of month, from which major producer decided to cut prices. We hope that firm stance from Middle Eastern suppliers and expected pick up in demand in preparation for Ramadan could prevent any further deterioration in the near term, especially in the yarn sector.”

Local homo-PP market currently stands in the range $1170-1270/ton without VAT, FD Indonesia, cash term.