- A local converter in Indonesia reported to SSESSMENTS.COM that this week, offers for localized Southeast Asian PP Homo Raffia cargoes from a trader increased between IDR1,000,000-1,300,000/ton ($67-87/ton) compared to last week, currently available at IDR13,500,000/ton ($904/ton) on cash, FD Indonesia basis and excluding 10% VAT. However, the converter is not interested in taking the cargoes as their buying idea is still below IDR12,000,000/ton ($804/ton)-level. In the import market, the converter opined that offers for Middle Eastern PP Homo Raffia cargoes at $820-830/ton-level are acceptable if the subsidy custom duty from the government (BMDTP) is released, but so far, the government has yet to release the facility. The converter opined that local PP prices will decrease in the upcoming week as current market conditions could not support the higher prices. Additionally, improvement in the Indonesia PP market will only be seen in August as the market will need time to recover.
- While in Vietnam, a converter informed SSESSMENTS.COM that this week, the company received high prices for import PP Homo Raffia cargoes. Compared to last week, offers for Thai PP Homo Raffia increased by $5-10/ton citing that the producer does not have an allocation to sell this week. While for Saudi PP Homo Raffia, the offers are still firm at $820/ton, decreased by $10/ton on the low-end of the price range compared to the same period. Meanwhile, PP Homo Raffia offers from another Saudi producer stand at $850/ton. The converter received PP Homo Raffia offers at below $800/ton-level from South Africa at $790/ton, however, the offers were deemed unattractive considering the long lead time. All offers are on LC at sight, CIF Vietnam Main Port basis. Due to the firm offers and sufficient inventory, the converter decided to refrain from procuring materials this week.
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