A global trading house told SSESSMENTS.COM that the company plans to stop taking contract cargoes from the leading Indonesian polyolefins producer if the producer does not provide compensation for the previous order cancelation for 20,000 tons of LLDPE Film C4 to China. The trader heard that two other global trading houses also intend to terminate the contract with the producer by not taking contract cargoes for August. Similar to the trader, the trading houses are suffering since customers in China compel the traders to give them compensation while the compensation scheme from the producer remains unclear. “We have not confirmed or promised anything yet to the customers,” the trader said.
Pertaining to the offers to Indonesia this week, the trader informed SSESSMENTS.COM that offers for PP Block Copolymer from South Korea were stable compared to last week, available at $1,040/ton on LC at sight, CIF Indonesia main port basis. For PP Random Copolymer of the same origin, the trader’s offers stand at $1,100/ton with the same payment and delivery terms. The trader could not provide comparison on the offer level since the trader does not take the cargoes regularly.
