Indonesia market remains soft in the post holidays

Two weeks since Indonesian buyers took off for the Ramadan holidays, many are still not back to their desks. The general market sentiment in local ground is rather sluggish with major domestic producer opens new price list for both PP and PE with reduction from mid-June.

In fact, domestic maker slashed LLDPE and HDPE prices by $10-20/ton on the first trading day on the week, rocking buyers confident in the near term outlook. A flexible packaging converter said, “We are covered till early August from pre-holiday replenishment and for now, we might wait and see on the side-line until end products orders come in. Upstream costs are soft and it appear that local supply-demand is still balanced.”

Several other traders have also reported about the calm condition despite the adjustment from local producer. “Many of our regular customers are still away due to comfortable stock on hand. This might depict slow condition throughout this week. We hope trading activities to improve by second half of the month.”

Indonesian buyers are mostly looking at the stable to softer trend in the near term pointing to the lack of support from both upstream and down stream markets. “We are able to obtain some discount on homo-PP in the distribution market for cash payment term. We are not expecting any significant swing in prices since market is amid off-peak season for homo-PP yarn,” another buyer added.

Kindly refer to the Daily Prices section on www.commoplast.com for detailed info about latest local and import prices in Indonesia.