Jul 17, 2025 11:38 p.m.

Indonesia's Chandra Asri to shut PP plant, buying appetite returned in local market

Indonesia's Chandra Asri to shut PP plant, buying appetite returned in local market

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Indonesian traders reported to have achieved satisfactory number of deals this week in local market even with higher price levels. Tightening domestic supply plays an important role in boosting sentiment as the upcoming shutdown has affect contract delivery.

As reported earlier, Chandra Asri is planning a two weeks routine shutdown at its 480,000 tons/year PP unit by end of September. And in addition to the previous production issues, the producer reportedly cut contract allocation for August delivery by 10%, stirring a search for material in distribution market, players said.

A buyer reported to receive $20/ton increased in local homo-PP offers from last week, reaching $1150/ton FD Indonesia, cash term said, “We have enough material until end of August and we are talking to trader to obtain some discount before replenish additional cargoes.”

Traders on the other hand, plan to hold firm stance on the cargoes pointing to the possibility that market is set for a rebound after an extended period of following the softening trend. A local distributor added, “The remaining cargoes at our side are very limited while demand has been signaling positive signs in recent week. Together with firming trend in the import ground, we think local market might continue to advance in the near term.”

Several converters informed CommoPlast that they have stocked up additional quantity fearing that the upswing might persist. Players also agreed that supply for PP film is rather limited with prices in distribution market have reached $1200/ton FD Indonesia, cash term.