Indonesian players: Import offers for PP block are limited
Indonesian players: Import offers for PP block are limited

Indonesian players this week reported receiving very limited number of new offers for PP block copolymers from overseas suppliers at high prices. Such condition is attributed to the recent production issues at several regional plants and attractive China market that magnetises most of the cargoes.
A South Korean producer announced import PP block copolymer earlier this week at $1260/ton CIF Indonesia, LC AS term, however soon withdraw the offers without much elaboration. A trader source reported, “Indonesian buyers show little interest in the cargoes and our principal supplier decided to direct the quantity to other market instead. Market might witness continued tightening supply condition in the near term and we expect to see better acceptance level amongst customers.”
Meanwhile, a Thailand producer lifted PP block copolymers to Indonesia by $40/ton week on week, reaching $1300/ton, CIF LC AS term. A source close to the producer said, “Our availability is very limited due to the recent production disruption. We do expect market to remain firm in the near term with the support from the supply side. Besides, inquiries from other regional markets are also satisfactory; hence we are only able to fulfil the orders for regular buyers.”
Also within the region, Malaysia’s Lotte Chemical Titan is operating both PP and PE plants at low rate, resulting in inadequate output to meet market requirement, sources said. Players are expecting a spike in offers in the coming days if demand within Indonesia improves.