An Indonesian PP producer anticipates the current price trend to persist as supported by regional maintenance and shutdown, SSESSMENTS.COM was told. This week, some of the producer’s customers have resumed business activities, hence, the procurement activities already occurred at the moment, not only from contract customers but spot market as well. As such, the producer has started offering this week and their current prices were hiked by IDR200,000/ton ($13/ton) on a weekly comparison, following the changes made by the leading Indonesian polyolefins producer.
According to the information provided by the producer to SSESSMENTS.COM, the majority of market players are still cautious in making bulk procurement as of recent. The producer cited that most of them are unsure whether the uptrend in PP prices will sustain or not. If the prices will continue to increase in the next few weeks, buyers are likely to be more confident in making more purchases. Demand-wise, sales for PP Homo Film and PP Homo Raffia grades in the domestic market is quite good, in contrast to PP Thermoforming.
In terms of outlook, the producer anticipates uptrend in PP prices will sustain in the upcoming weeks. As of next week, the market will be active again as most players will be back from the holiday and procurement activities will improve as well. At the same time, the producer opined that production rate and demand will increase following the lifting of social restriction in several cities in Indonesia. Additionally, even though there are no supply issues from the producer’s end, shutdown in several regional producers’ PP plants will affect the domestic supply and will keep local PP prices firm. More added to SSESSMENTS.COM, during the social restriction in Indonesia, most of the producer’s customers informed that sales for their finished products have dropped to 30%.
Click below to view related stories and content on PP:
NewsSSESSMENTS: Leading Indonesian Polyolefins Producer Announces Price List Week 22, May 26
NewsSSESSMENTS: Indonesia's Largest Local Trading House Announced PE, PP Offers Amid Holiday Week
