An Indonesian trader informed SSESSMENTS.COM on the latest done deals for local and localized PP cargoes from their end. Compared to last week, offers for local PP Homo Raffia remain stable on the high-end and decreased by IDR100,000/ton ($7/ton) on the low-end of the price range. Despite the weak buying sentiment in Indonesia PP market, the trader managed to close deals for local PP Homo Raffia cargo at the same level to the low-end level to Java at IDR14,200,000/ton ($999/ton) on cash, FD Indonesia basis and excluding 10% VAT. While to Medan, the trader sold local PP Homo Raffia cargo at IDR200,000/ton ($14/ton) higher than deal levels to Java as the allocation is limited. Some buyers even asked PP cargoes to be sent from Jakarta to Medan.
As for localized cargoes, done deals for localized Vietnamese PP Homo Injection achieved at IDR14,050,000/ton ($989/ton) on a credit term basis. Meanwhile, offers for local PP Homo Film are available at IDR300,000/ton ($21/ton) higher than last week’s level. However, current offers are deemed too high by buyers. Market talks have it that other suppliers are offering the same cargoes at IDR14,300,000/ton ($1,006/ton)-level. Additionally, at the moment, no cargoes available for these grades as trader still have backlogs to clear. Cargoes are limited due to the lower production rates on the suppliers’ end, that is currently running at 85% from normal capacity. Due to this, the trader could not meet the inquiries from Thai buyers, SSESSMENTS.COM was told. In the import market, last week, the trader received offers for Vietnamese PP Homo Raffia at $950/ton on LC at sight, CIF Indonesia Main Port basis, however, no deals concluded as the offers were deemed unworkable.
Demand-wise, as mentioned before, the overall buying sentiment in Indonesia is weak. The trader stated to SSESSMENTS.COM that demand for PP Homo Injection is lower than PP Homo Raffia. Likewise, no improvement was seen for PP Homo Film demand. On the supply front, this month, no PP allocation received from a Vietnamese producer citing the limited supply.
