- A trader based in Indonesia reported to SSESSMENTS.COM that the company has made an adjustment for local PP Homo Raffia prices this week. As compared to the offers at the beginning of last week, the offers went up by IDR500,000/ton ($33/ton), currently available at IDR13,300,000/ton ($894/ton) on cash, FD Indonesia basis and excluding 10% VAT. To date, the trader has managed to sell some volume at IDR100,000/ton ($7/ton) lower than the initial offer level, but on 30 days credit term. At the same time, some of their customers who are woven bag manufacturers have yet to place inquiries so far, hence, the trader will attempt to approach the customers as the trader heard that their end-product sales are quite good these days. From the trader’s side, they decided to postpone procurement to early June in order to get better prices, citing that the leading Indonesian polyolefins producer just raised their offers for PP Homo Raffia by IDR300,000/ton ($20/ton) compared to Monday’s level. The trader opined that the prices will move down by the end of May as the market will be muted amid Eid Al-Fitr holiday.
- While in Vietnam, a converter informed SSESSMENTS.COM that their stocks for PP Homo Raffia are currently sufficient for 2 months production. Therefore, the converter decided not to make any procurement this week. In the days to come, if the prices will be on an uptrend onwards, the converter hopes that the offers for localized PP Homo Raffia prices of Saudi origin will only touch VND20,500,000-21,000,000/ton ($875-896/ton)-level at maximum. Demand-wise, sales for packaging and shopping bags from their end decreased around 30% compared to the period before the Coronavirus outbreak.
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