Slow sales in the local market coupled with high inventory pressure on their end have urged an Indonesian trader to move PP cargoes to China market. A trader based in Indonesia informed SSESSMENTS.COM on concluding a deal for PP Homo Film cargoes to the Chinese market last week at $835/ton, $40 lower than the initial offer level. The buyer is an injection converter who considers that the quality of PP Homo Film products offered is sufficient to be used in PP Homo Injection production machines. The trader also informed that after the oil price went down, the company got bids below $800/ton-level, but no deals concluded as such a level is too low.
The trader stated that the transfer of PP Homo Film cargoes to the Chinese market was due to weak Indonesian market absorption. “Before we managed to sell cargoes to China, we were under inventory pressure, but now the pressure has been eased,” the trader added to SSESSMENTS.COM. In the local market, deals for PP Homo Film were concluded at IDR13,600,000/ton ($871/ton) or IDR100,000/ton ($6/ton) lower than the initial offer.
For PP Homo Raffia and PP Homo Injection cargoes, the trader offered local and localized Vietnamese cargoes at the same level at IDR13,600,000/ton ($871/ton), down by IDR200,000/ton ($12/ton) from last week's offer level. The trader managed to sell local PP Homo Raffia cargoes to another trader, with deals concluded at IDR300,000-400,000/ton ($19-25/ton) lower than the initial offer level. In terms of demand, sales for PP Homo Film in Indonesia is the weakest, while sales for PP Homo Injection and PP Homo Raffia are still considered good. PP Homo Injection, PP Homo Raffia manufacturers have started to operate at 50% after shutdown on the previous weeks.
Further added to SSESSMENTS.COM, most manufacturers in Indonesia had been operating through special permits during the large-scale social distancing. Those who are not running due to the location of the plant outside the industrial zone.
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