As of June 26, an Indonesian converter informed SSESSMENTS.COM on receiving attractive offers from the local PP producers in the country. As reported, the leading Indonesian polyolefins producer and the biggest PP producer in the country are offering PP Homo Raffia between IDR14,200,000-14,300,000/ton ($996-1,003/ton) on cash, FD Indonesia basis and excluding 10% VAT. According to the converter, this level is between IDR100,000-200,000/ton ($7-14/ton) lower than the leading polyolefins producer’s contract price. In response to the offers, the converter submitted bids below ID14,000,000/ton ($982/ton)-level but yet to get a response from the producers.
At the beginning of the week, SSESSMENTS.COM noted that PP Homo Raffia prices from the leading Indonesian polyolefins producer’s price list for the week commencing June 22 emerged at IDR15,060,000/ton ($1,056/ton) on cash, FD Indonesia basis and excluding 10% VAT, increased by IDR440,000/ton ($31/ton) from last week’s price list. From other sellers, local PP Homo Raffia cargoes captured available between IDR14,600,000-15,600,000/ton ($1,024-1,094/ton) depending on payment terms. Considering the attractive offers received by today (June 26), the converter commented, “We think it is a sign that the PP Homo Raffia prices will go down in the near term. It seems like both producers want to secure better netback by adjusting down the offers before other suppliers do.”
