- A woven bag manufacturer in Indonesia reported to SSESSMENTS.COM on receiving PP Homo Raffia offers from a PP producer in the country at IDR100,000/ton ($7/ton) higher than last week’s level, available at IDR13,300,000/ton ($892/ton) on cash, FD Indonesia basis and excluding 10% VAT. While in the import market, the manufacturer mentioned that Middle Eastern cargo is quite scarce these days; hence the prices for PP Homo Raffia are firm at $820/ton on LC at sight, CIF Indonesia Main Port basis. So far, the manufacturer did not hear any offers from Southeast Asia origin. At the moment, the manufacturer has yet to submit bids for both local and import cargoes as the prices are rather unattractive and they still have a sufficient inventory on hand. Demand-wise, sales for their end-products are quite good as supported by the preparation of harvest season and some orders from sugar factories. As such, the manufacturer is currently running production at a normal rate but will be off during Eid Al-Fitr holiday.
- While in Vietnam, a converter informed SSESSMENTS.COM on purchasing 25 tons of localized PP Homo Raffia cargo of Saudi origin at VND20,000,000/ton ($853/ton) on cash, FD Vietnam basis and including 10% VAT. The converter is not sure about the price comparison but they consider that the current prices are quite appealing. In the local market, the converter did not hear any fresh offers this week, but if local producers are still offering at VND22,000,000/ton ($938/ton)-level, the converter believes that no buyers will be willing to buy their cargoes since such a level is too high. This week, demand for their end-products remains stable from last week. In the days to come, the converter opined that there is no chance for PP prices to move down further as they assumed that the current price level has bottomed-out.
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