Overseas suppliers cuts homo-PP prices to Indonesia

Several international suppliers have decided to step back on homo-PP prices to Indonesia this week following the general weakening sentiment across the region. Deals are concluded at $20-30/ton below offer levels; yet buying interest is not very strong, market sources said.

Players are blaming the sluggish buying interest for import cargoes to the fact that most buyers are running out of quota for Bea masuk ditanggung pemerintah (BMDTP) or Import Duty Borne by the Government scheme. “And therefore, many buyers might need to wait for the re-newal of BMDTP before they can purchase additional cargoes from import market,” a trader commented.

“We managed to sell out the allocation to Indonesia after conceded to $20-30/ton discount from initial price list. Buyers are expecting lower prices in the near term, hence very cautious about making large buy,” a Middle Eastern producer informed.

Meanwhile, Vietnamese homo-PP also concluded at $30/ton below initial offers, confirming the difficulties supplier faced in attracting buying interest after an extended period of holding prices firm. “We think market is entering the correction period and likely to witness additional discount in the near term. Besides the BMDTP issues, the expectation is also holding the purchasing activities back,” a buyer added.

Import homo-PP to Indonesia currently stand at $1150-1250/ton, all based on CIF Indonesia, LC AS term.