Malaysia maker slashed September PP, PE offers to Indonesia

Indonesian buyers on the first trading day of the week reported having received fresh PP and PE offers from a key Malaysian maker with reductions from the previous month, underlining the sluggish trading sentiment.

The maker’s latest price list and changes month on month are shown in the following table:

Even with the $50/ton reduction on most PP cargoes, Indonesian buyers find the latest offers from the producer unattractive. Sources cited deals for non-dutiable Vietnamese homo-PP cargoes late last week at $1230/ton CIF Indonesia.

“Indonesia is loosening the lockdown measures, but demand is still lagging behind. Buyers would likely to make only small purchases to cover the immediate needs while waiting for further improvement in end-product orders,” a market source commented. 

The fall in export offers has Malaysian buyers questioned the near-term outlook in the local ground, expecting at least a small discount from August when domestic producers announced September delivery cargoes.