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This week, import homo-PP offers to Indonesia rise considerably on the back of tightened general supply and reduced pressure from local market. On an average, import homo-PP prices gained $20-30/ton, making offers below the $1100/ton threshold becoming scarce at the moment.

Dutiable cargoes appear to have moved up in faster pace, reaching $1100-1150/ton CIF Indonesia, LC AS term, erasing most of the price gap with non-dutiable material, which is currently traded at $1120-1170/ton with the same term. However, buying interest here is weakening as most buyers withdraw to the side-line after a rush replenishment observed in the previous week.

A buyer claimed to have comfortable stock until end of September said, “Our Vietnamese supplier is very firm on the homo-PP yarn cargoes at $1150/ton CIF Indonesia, and we are considering whether to procure additional quantity. Demand for our end products is slow at the moment.”

Several other PP woven bags manufacturers are also bringing up the concern over the sustainability of the current trend, pointing to the fact that end product prices are falling, which might discourage buyers from accepting higher raw material offers. In addition, players are also highlighting signs of stabilizing domestic market. A trader offers local homo-PP at $1170/ton FD Indonesia, cash term – which is not far from import prices, said, “Sales are slower. Yet, we think market might hold the current position throughout August since most sellers are not facing any pressure. Price list from producer might continue to move up, however it is hard for distribution market to achieve further hike.”

Another buyer added, “We are not planning to accept dutiable cargoes at the current high levels, considering the import duties. As we result, we prefer to be conservative.”