Market sources informed SSESSMENTS.COM that import PP Homo Raffia offers bounced back to the four-digit territory due to supply shortage. Buyers in Indonesia reported facing difficulties in securing PP Homo Raffia cargoes as most producers are having low to zero inventory. This week, a Thai PP producer offered PP Homo Raffia at $1,000/ton and also cited limited allocation as the reason for such a high level. Likewise, another Thai PP producer offers PP Homo Injection at a similar level to Vietnam due to limited quantity. On a weekly comparison, the offers increased by $50/ton.
For PP Homo Raffia cargoes of the Middle East origin, an Indonesian converter told SSESSMENTS.COM that the company managed to conclude deals at $870/ton. However, when the converter requested for additional volume, the producer informed that the cargoes were no longer available. The converter then proceeded to conclude deals with another Middle Eastern PP producer at $30/ton higher than the previous deals because compared to local offers, the deal level is still more competitive. For India origin, offers stood at $850/ton but since the shipment is in August, the converter was uninterested in purchasing the cargoes.
Similar to PP Homo Raffia, the availability of import PP Homo Film to Indonesia is also limited. Market participants informed SSESSMENTS.COM that many Middle Eastern and Southeast Asian producers do not have PP Homo Film cargoes to offer. Hence, the available offers for the product are firm. Offers from a Saudi producer stood at $950/ton and bids placed at $50/ton lower than the initial offer level were rejected. All import offers are on LC at sight, CIF basis.
In the local market, shortage in supply for PP Homo Raffia and PP Homo Film was also reported to SSESSMENTS.COM. According to a rumour circulating in the market, low inventory level of a local producer is due to the producer oversold materials last month.
