A global trading house informed SSESSMENTS.COM that the leading Indonesian polyolefins producer’s supply reliability is questioned in China, hence, the trader did not forward the producer’s offers for HDPE Film to customers in China last week. The offers were between $920-930/ton on LC at sight, CIF China main port basis. According to the trader, Chinese customers are disappointed with the way the producer handled the cancelation of July shipment for 20,000 tons of contract LLDPE Film C4. “So far, the producer has not addressed how the company will compensate the customers,” the trader said.
The trader further explained to SSESSMENTS.COM as the matter led to reliability issues, Chinese buyers prefer not to take any cargoes from the producer. The producer started offering to the China market in November, but in less than a year, the producer has made buyers in China raise concern over the producer’s credibility and commitment, the trader added. Pertaining to August shipment, the trader mentioned that the producer has materials available, but no further information on how much percentage of contract could be provided.
