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After an extended period of weak demand in local Indonesia market that disappointed many suppliers, this week, sellers started seeing better number of deals for both PP and PE. Buyers in the country generally perceived that prices are nearing the bottom following five consecutive weeks of reduction from domestic makers; however, few have expected strong rebound in the near term.

A trader lifted offers for HDPE film by IDR325,000/ton ($24/ton) from last week, to reach IDR15,225,000/ton ($1144/ton) without VAT, cash term said, “We managed to conclude a good number of deal this week. Buyers are still asking for old prices on deals, yet we might maintain firm stance as our offers are still more competitive than import material at the moment.”

Earlier this week, a major domestic producer implemented $20/ton reduction on homo-PP prices, bringing latest price list to approximate $1160/ton without VAT, FD Indonesia, cash term. Yet, buyers are still able to obtain lower level from distribution market. A converter reported to have received offers from trader at $1120/ton with the same term said, “We have purchased some quantity at this prices as it is competitive enough. PP market might be heading for stabilization, though we are not expecting any rebound since demand is not there to support such move.”

Traders in the country also reported healthier trading activities this week, just that prices are much lower than producer’s official price list. One concern has been widely discussed among Indonesian buyers is market might turn weak again after the Ramadan celebration during late June. “Therefore, we only purchase one month worth of stock and would continue to monitor further movement,” another buyer added.

Kindly visit the Daily Price section on www.commoplast.con for detailed local PP and PE prices in Indonesia this week.