An Indonesian trader informed SSESSMENTS.COM that the leading Indonesian polyolefins producer is under pressure to sell PE and PP cargoes due to overstock at the producer’s end. This week, the trader is offering local HDPE Film and LLDPE Film C4 cargoes at IDR350,000/ton ($24/ton) lower compared to offers available in early last week. While compared to the end of last week, the offers for both products decreased by IDR50,000/ton ($3/ton). However, buyers are not interested in taking cargoes.
Likewise for PP, SSESSMENTS.COM noted that the trader adjusted down local PP Homo Raffia and PP Homo Injection offers by IDR350,000/ton ($24/ton), while offers for local PP Homo Film dropped by IDR200,000/ton ($14/ton). All PP offers compared to last week’s levels. However, no deals concluded yet as market talks have it that the leading Indonesian polyolefins producer is giving special price for PP Homo Raffia cargoes, offering at IDR14,200,000/ton ($962/ton) on 30 days credit term, FD Indonesia basis for purchasing quantity 500-1,000 tons, or IDR950,000/ton ($64/ton) lower than the trader’s offers.
According to the trader, both PE and PP inventory level at the leading Indonesian polyolefins producer’s end are abundant. Hence, currently, the producer is under pressure to sell the cargoes to the domestic and export market. The trader opined that the producer started dumping materials as afraid that the market could not absorb the cargoes, as stated to SSESSMENTS.COM.
