Local producer lifted PP, PE offers in Indonesia, demand seems weakened

A major domestic producer in Indonesia has announced new PP and PE offers to local buyers with additional increases of $20-40/ton from last week. Tight supply and strong upstream costs are cited as the main support for the move, despite shrinking buying interest.

Buyers in the country are becoming more cautious as prices continue to hit new record high this year. “The latest offers are beyond market acceptance levels and we plan to wait and see since our end product prices are not catching up,” a converter commented.

To reiterate the sluggish demand condition, traders are planning to maintain their offers unchanged from last week, with cash and volume discount available to attract buying interest, “We are not planning to follow the hike. Local demand is diminishing and we plan to deplete more cargoes this week, especially for homo-PP yarn grade,” a trader commented.  

The producer price list is shown in the following table: