A local trader reported that Indonesia PP market remains subdued this week despite tightening supply. Trader informed SSESSMENTS.COM that their company offers local and localized Vietnamese PP Homo Raffia and PP Homo Injection cargoes at IDR14,300,000-14,400,000/ton ($1,010-1,017/ton). Deals were concluded at IDR14,000,000/ton ($988/ton) for PP Homo Injection cargoes. Meanwhile, customers voiced their buy ideas towards local PP Homo Film cargoes at IDR14,000,000/ton ($988/ton) or IDR500,000/ton ($35/ton) lower from their current offers. However, the trader could not accept such a level citing local PP price is on an upward trend following firmer feedstock prices as well as tightness supply in the domestic market.
The trader told SSESSMENTS.COM that demand this week is very slow as customers prefer taking a wait-and-see stance. At the same time, their PP inventory trader is low since the company did not get allocations from a Vietnamese producer for this week. The trader also shared information that a local PP producer and their raw materials’ supplier had resumed operation since the end of May even though the production rate is still below normal capacity due to weak demand.
