Import PP cargoes remain failed to attract the desired response from the Indonesia market this week. A trader informed SSESSMENTS.COM that this week's import PP offers of Vietnam and South Korea origin maintained stable compared to last week. PP Homo Raffia and PP Homo Injection from Vietnam are available at $1,010/ton while BOPP at $1,020-1,030/ton. For PP Block Copolymer, the trader is offering South Korean cargoes at $1,040-1,050/ton. This week, the trader also received offers for PP Homo Film from a Vietnamese producer at $1,040-1,050/ton. All on LC at sight, CFR Indonesia Main Port basis. The trader pointed out that the producer is back in producing this grade after adjusting the formula that produces better quality than before.
The trader added that their offers are not firm, deals can be closed lower than initial offer levels depends on the initial bid and volume of purchases. Afterwhile, some customers already tried to place bids for PP Homo Raffia and PP Homo Injection grades at $40/ton lower than the initial levels, but the trader rejected the bids since they could not sell that low. The trader commented that buying sentiment in Indonesia market is the same as last week with buyers remain reluctant to make procurements. Most of the trader’s customers take a wait-and-see stance after learning the initial offers. SSESSMENTS.COM noted that converters are concerned about the slow finished product sales that they are very careful in sourcing materials and, as mentioned by the trader, may be discouraged by high prices.
Looking ahead, trader shared their thought to SSESSMENTS.COM that import PP prices would not be able to maintain its high level as demand has yet to improve. There might be some downward adjustments in the days to come, the trader opined.
