Saudi maker concluded homo-PP at stable to softer level in Indonesia, Vietnam

Players in Indonesia and Vietnam this week reported to have concluded deals for Saudi Arabia homo-PP in the range $1050-1060/ton CIF, LC AS term, stable to slightly softer compared to last week. While demand in Indonesia seems satisfactory, sellers are rather disappointed with the buying interest among Vietnamese buyers.

An international trader reported to have sold approximate 1000 tons of the cargo to Indonesia t $1060/ton CIF, LC AS term said, “We initially receiving very low bids, however thanks to firmer local market, buyers here are more confident in making replenishment at unchanged level from last week. This time, we have regular allocation to Indonesia.”

International sellers hold strong hope that demand for import material in Indonesia would gradually pick up after the Ramadan holiday after the release of Bea masuk ditanggung pemerintah (BMDTP) or Import Duty Borne by the Government scheme.

Meanwhile, Vietnam market seems less active though the supplier has agreed to conclude deals at $5-10/ton lower than last week at $1050-1055/ton CIF, LC AS term. The trader commented, “We only managed to sell a small quantity in Southern market. Domestic ground is softening and buyers here do not seem to be interested in making replenishment. We are a bit concern over the near term market outlook.”

Propylene costs firm up four sessions in a row, which is expected to hold the PP market on stable track throughout June. Offers for Middle Eastern homo-PP might lessen toward the end of the week and next week as suppliers in these countries are off for holidays.