Review of Indonesia PP Homo Raffia Market
- Middle East origin $970-1,050/ton
- Southeast Asia origin $1,065/ton
Comments by market players on PP Homo Raffia as follows:
In the week commencing August 1, import PP Homo Raffia offers to Southeast Asia are registered stable to softer. A South Korean producer set off a stable offer level for PP Homo Raffia to Vietnam, still at $1,030/ton. On the other hand, offers for the same product from another South Korean producer to Vietnam stand at $1,000/ton, which was $170/ton lower than last week’s price indication. In Indonesia, import PP Homo Raffia offers from a South Korean producer remained unchanged, holding firm at $1,260/ton. At the same time, a Philippines producer decreased offers for the same product by $40/ton to $1,065/ton and is still open for negotiation, yet remains above buyers’ buy idea. For Middle Eastern cargoes, offers for Saudi PP Homo Raffia cargoes to Indonesia via a global trading house are pegged at $1,050/ton. At the same time, an Indonesian plastic product end manufacturer received PP Homo Raffia offers from the same origin at $970/ton. Meanwhile, another global trading house has no official offers for PP Homo Raffia cargoes from another Saudi producer and asked buyers to submit bids. All import offers are on LC at sight, CIF Main Port basis. In the domestic market, the leading Indonesian polyolefins producer trimmed its PP Homo Raffia price list by IDR460,000/ton ($31/ton) from the price list on July 23. On the flip side, an Indonesian polypropylene (PP) producer kept its price list stable. A plastic product end manufacturer received PP Homo Raffia offers from the producer with a decrease of IDR200,000/ton ($13/ton) and purchased at the initial offer level. All price changes refer to weekly comparison unless stated otherwise.
By and large, polypropylene (PP) demand in Indonesia remains less than encouraging since buyers are still indecisive in replenishing stocks, although sales performance in the downstream market has picked up slightly. Meanwhile, others prefer to monitor the market movement and continue undertaking procurement on an as-needed basis. Looking ahead, market players pointed out that demand typically improves from September amid the preparation of the year-end festival. Meanwhile, polypropylene (PP) offers are expected to stabilize in the near future as the prices are already near the bottom. Others opine that if Chandra Asri Petrochemical Tbk (CAP) continues to run production at a reduced rate and finished product demand improves further, polypropylene (PP) offers may find support to increase later on.
