After having no spot allocations and unable to offer for almost three weeks, a regional trader eventually obtains PP allocation from a Vietnamese producer this week and is now offering the cargoes to the Indonesia market at four digits. On July 8, the trader informed SSESSMENTS.COM that the company has obtained allocation for PP Homopolymer grades from a Vietnamese producer. Although there is no further detail regarding the exact quantity from the producer’s distributor, the trader assumed that the allocation should be sufficient. Upon obtaining the allocation, the trader is promptly offering to their customers in Indonesia at $1,000/ton for both PP Homo Injection and PP Homo Raffia. The offers are available on LC at sight, CFR Indonesia Main Port basis and the shipment would be in late July to early August.
Since the offers just freshly released on Tuesday evening, July 7, the trader has yet to gain responses from their customers to date. However, the trader believes that most customers will submit bids at lower than the initial offer levels considering the bearish market sentiment. At the moment, the trader has no sell idea to be expressed, but the company is willing to give room for negotiation and deals would be closed based on bids and volume of purchases, as told to SSESSMENTS.COM.
Speaking of the demand, SSESSMENTS.COM was told that domestic demand for PP resins in Indonesia is currently stable to softer as compared to last week. The weakening demand for resins is also in-line with the sales for woven bags as an impact of the harvest season that is almost over. Moreover, the trader revealed that it is rather hard to compete with the local cargoes as the offers are considered quite attractive.
