A local converter in Indonesia addresses the current PP market situation in the country. As informed to SSESSMENTS.COM, most customers are asking for lower prices on the back of sour demand amid the pandemic crisis. As the pandemic crisis continues to roil the market and business around the world, market talks have it that some textile manufacturers are forced to close down, while some manufacturers switch to produce medical masks.
In terms of offers, the converter revealed to SSESSMENTS.COM that this week, the company has secured some volume from the leading Saudi polyolefins producer at $960/ton, or $30/ton lower than the initial offers. All offers are on TT, CIF Indonesia Main Port basis. As for PP Homo Raffia, the converter has a contract agreement with a Vietnamese PP producer. The first three containers are scheduled to arrive on June 29, with three others arriving in early-July (July 4). The converter added that the availability of spot PP Homo Raffia cargoes of Vietnamese origin is scarce. Since the converter already made a contract agreement with a regional trader previously, the company is still able to secure some volumes to cover up monthly production.
