Indonesian producer lifted local PP, PE offers for second time this week

Indonesian buyers on the final trading day of the week reported receiving the second price hike within a week from a major domestic producer. This current firming trend is expected to persist in the coming week, sources said, especially for PE cargoes, as supply across the country remains tight at the moment.  

The producer’s latest price list and changes are shown in the following table:

“Buyer have been holding purchases for too long and the market started to see some movement in the energy and currency sector that positively affect the replenishment sentiment. While many others have already depleted all ready cargoes, we are having quantity and in full mood to sell,” a trader said.

In contrast, the homo-PP yarn market persists on the more bearish notes and in spite of higher prices list; major suppliers in the country are forward selling cargoes for June and July delivery at IDR18,100,000/ton ($1298/ton) without VAT, FD Indonesia, cash equivalent. “We are asking for IDR400,000/ton ($29/ton) discount on deals, however, our suppliers rejected. Such activities signal the lack of confidence amongst sellers for the medium term outlook,” a buyer added.