The absence of inventory pressure has encouraged Indonesia’s largest local trading house to amend local and localized Southeast Asian PE PP offers, SSESSMENTS.COM noted. Compared to offers on June 2, the trader decided to adjust up their offers for local and localized Southeast Asian HDPE and LLDPE grades by IDR400,000/ton ($28/ton). The decision was made as triggered by the lack of inventory pressure from traders’ end. Basically, the majority of traders in Indonesia are reportedly having no inventory pressure recently as the supply level of PE and PP in the domestic market is quite low.
The trader also notified that supply from a Malaysian polyolefins producer is disrupted due to the upcoming maintenance shutdown at the producer’s plants. While across the Southeast Asia market, most of the suppliers are having no ready stocks at the same time. Due to this, most buyers will likely not be interested in purchasing since most Southeast Asian suppliers are unable to deliver their cargoes by the end of July. On the other side, the trader is worried that ethylene prices may be moving lower in the near term. In general, the trader stated to SSESSMENTS.COM that the domestic market is still quiet as most players have just returned from their holiday.
Further added regarding PP cargoes, the trader informed that they are currently offering local and localized Southeast Asia PP Homopolymer grades at above IDR14,000,000/ton ($971/ton)-level. According to SSESSMENTS.COM’s pricing database, the latest offers from the trader went up by IDR300,000/ton ($21/ton) for PP Homo Raffia, PP Homo Injection and by IDR400,000/ton ($28/ton) for PP Homo Film, as compared to the offers available on May 26. The pricing decision is in line with the leading Indonesian polyolefins producer’s strategy. Citing supply limitations, the trader believes that the producer will not dump prices in the near term. However, once the producer finishes with their backlogs, it remains possible that the producer will adjust down their cargoes again. Therefore, the trader is not interested in buying long-time delivery cargoes.
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