Indonesian buyers: Competitive local homo-PP to anchor import market
Indonesian buyers: Competitive local homo-PP to anchor import market

As overseas suppliers started taking a firmer stance on import homo-PP offers to Asia on improved demand condition in China market, Indonesia buyers are not expecting any strong rebound in import offers amid widely available competitive local cargoes.
Based on CommoPlast data, the average local homo-PP prices in Indonesia currently stand at about $1300/ton FD Indonesia, cash equivalent, the level that is similar with the import cargoes from the non-dutiable origin. Putting producer’s price list aside, buyers are able to obtain cargoes from local distribution market at $1260-1265/ton FD Indonesia, cash equivalent, causing tremendous pressure on import ground.
An international trader sold Vietnamese homo-PP at $1285/ton CIF Indonesia said, “Demand is very slow and this week we only manage to sell about 200 tons of the said cargoes to Indonesia. Import market might only rebound if local prices firm up strongly in the near term.”
Offers for non-dutiable cargoes have been tracing domestic market lower since the beginning of February as demand is hampered by government’s stringent tax schemes. Compared to the cyclical peak during early February, prices for import non-dutiable origins have fallen approximate $80/ton. This has narrowed down the price gap between dutiable and non-dutiable cargoes to about $60/ton this week, compared to $100/ton at the beginning of March.
Indonesia market might not see any major improvement in the near term, as converters have stocked up lengthy inventories for the Ramadan preparation. Having said so, it is important to note that demand in China is recovering, which could lend regional and international suppliers sufficient support to keep market steady in the coming week. “The market is anchored. Any drastic hike is very unlikely, especially without the support from the demand side. A rebound is more realistic after the Ramadan celebration during mid of June,” a market source said.