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A major Indian producer reportedly lifted homo-PP offers to Vietnam and Indonesia by $20-30/ton from last week, reaching $1160/ton CIF, LC AS term today. This is a repeated scenario as the maker achieved satisfactory sales result in the nearby China market at higher price levels.

Respond from Indonesian buyers is obviously disappointed and a good number of converters informed CommoPlast about comfortable stock on hand for the next two months. A buyer said, “Prices are too high at the moment. In spite of the general tight supply condition, we are still concern over the sustainability of the current trend.”

Meanwhile, in Vietnam, buyers are placing bids in the range $1120-1130/ton CIF Vietnam, LC AS term though the supplier rejected all lower bids. A distributor said, “Availability for homo-PP in domestic ground is not high due to lack of import cargoes arrival. Market might become tighter in the near term and therefore, we think buyers shall accept the hike soon.”

Indian homo-PP concluded in China in earlier day at $1130/ton CFR China, LC 30 days term, from which it is reasonable to maintain a gap of $30t/on with Southeast Asian market due to higher shipping costs.