Import homo-PP to Indonesia struggle to maintain the firm stance

Import homo-PP to Indonesia has been steadily firming up since the final week of July despite the steep depreciation of the Indonesian Rupiah against the US dollar that restricted demand for imports. However, overseas sellers started to loosen the stance on the cargoes this week, signalling the struggle international suppliers are facing in maintaining the upward momentum.

Deals reported for dutiable homo-PP yarn at $10/ton below initial price list at $1250/ton CIF Indonesia, LC AS term while special deals for Vietnamese materials are observed at $1250/ton with the same term – a $40/ton plunge from last week’s price list.

“We opted for Vietnamese cargoes given various competitive advantages, including duties free, shorter lead time and lower than local prices,” a converter purchased 300 tons said.

Other Southeast Asian suppliers have yet to match the price cuts but do acknowledge the difficulties in attracting buying interest in this market. “Domestic suppliers have been very aggressive over the past months in protecting the market share. It is hard for import materials to compete unless we are willing to sell at loses,” an international trader offering Thailand homo-PP yarn at $1340/ton CIF Indonesia said.