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On the first trading day of the month, a major domestic producer decided to cuts offers for homo-PP by IDR460,000/ton ($33/ton) after three consecutive months of increases.

The producer’s latest price list and changes are shown in the following table:

The cuts do not surprise buyers in the country given the fact that many trades have initiated the reduction two to three weeks earlier. “Demand for homo-PP is very weak and despite the firm stance from overseas sellers, we are unable to stimulate domestic activities,” a trader commented.

Many other converters are complaining about the lack of end product demand after the government tightens regulation on value added tax. “And with competitive local prices, it is very challenging for import material at the moment,” another market source added.