An Indonesian converter informed SSESSMENTS.COM that the company prefers to halt procurements activity as import PP prices moving in contrast with the local trend. On a weekly comparison, offers for PP Homo Raffia from a Saudi PP producer moved up by $20/ton. However, these offers are deemed too high and unworkable by the converter citing PP prices in the local market showed some decreases. In the local market, offers for PP Homo Raffia are available at IDR13,800,000/ton-level, equivalent to around $900/ton-level for import cargoes or $50/ton lower than current PP Homo Raffia offers from the Saudi producer. Considering this, the converter prefers to halt procurements activities in expectation of lower prices in the upcoming month.
Further explained, the converter opined that firm import PP prices would not sustain as buyers mostly show resistance towards current offers, as stated to SSESSMENTS.COM. From the converter’s end, even though demand for the woven bag could not be categorized as strong yet, the company maintains to running at the same level as last week around 80-90% from normal production rates.
