An Indonesian converter reported to SSESSMENTS.COM that the offers for import Philippines PP cargoes captured at a remarkable level. For this week, the offers for import Philippines PP Homo Raffia via traders to Indonesia market stand at $1,000/ton on LC at sight, CIF Indonesia Main Port basis. The converter decided to skip the procurement for the cargoes as the offers are deemed too high. Moreover, the offers will be even higher once the clearance cost is added to it. In the month of July, at the time of publication, the highest import PP Homo Raffia offers in Southeast Asia market is coming from a Thai producer at $1,060/ton while from the Middle East, the leading Saudi polyolefins producer’s cargoes are available at $1,020/ton on LC at sight, CIF main port basis.
Currently, the converter is still waiting for Vietnamese PP Homo Raffia cargoes as much as three containers to arrive at the company’s warehouse. While another six containers scheduled to arrive at the port on July 11 and July 16. The converter added to SSESSMENTS.COM that there is no spot offers available for Vietnamese PP cargoes due to limited supply while the company managed to secure some materials on a contract basis. For BOPP, supply from the leading Indonesian polyolefins producer is still normal.
Pertaining to the market condition, the converter stated to SSESSMENTS.COM that the lockdown transition in Jakarta has limited impact as the demand for the company’s finished products such as food packaging and fashion packaging still ongoing. Looking ahead, the converter opined that room for the price to increase is limited as the fundamental demand for finished products could not be considered strong yet.
