Indonesian Sources: Muted Market Ignites Expectation Of Further PP Price Adjustments
- Local and import PP offers in Indonesia captured in a distinct trend
- Buyers shy away from procurement activities due to two prominent reasons
- Players forecast further price adjustments considering buying sentiment
Indonesian sources contacted by SSESSMENTS.COM voiced out that the muted market has ignited expectations of further PP price adjustments. On the week commencing July 27, the leading Indonesian polyolefins producer initiated a price decrease for PP across different grades between IDR130,000-420,000/ton ($9-29/ton). Following a trail, a trader decided to lower local offers for PP Homopolymer grades by IDR200,000/ton ($14/ton). Meanwhile, another trader maintains stable offers for local PP Homo Raffia cargoes but is willing to sell at IDR100,000/ton ($7/ton) lower than the initial offer level since their offers are considered too high compared to other traders. On the other front, a converter reported receiving offers for local PP Homo Injection at IDR250,000/ton ($17/ton) lower. For localized cargoes, offers for Thai PP Homo Film via the largest local trading house in the country dropped by IDR500,000/ton ($34/ton). Contrastingly, offers for localized PP Homo Raffia cargoes of Malaysia origin via the same trader emerged with an increase of IDR100,000/ton ($7/ton). The converter who received the Malaysian cargoes assumed that the increment was made on the back of the fluctuation of currency exchange rate. All offers are on a weekly comparison.
In the import market, a converter received offers for Saudi PP Homo Raffia at $30/ton higher, stood at $990/ton and Vietnamese cargoes for the same materials at a stable level of $1,000/ton. The converter disregarded both cargoes as they thought that those levels were unsuitable with their buy idea which only at $920/ton for Middle Eastern cargoes and $940/ton for Vietnamese cargoes. Via a global trading house, import offers for Saudi PP Homo Raffia increased between $30-40/ton, at $990/ton. Since such a level is deemed unworkable in Indonesia market, the trader attempted to approach buyers with a sell idea at $950/ton. Unfortunately, no deals achieved as buyers’ buy idea is still below the trader’s sell idea. However, another global trading house managed to close deals for Saudi PP Homo Raffia at $960/ton, or $30/ton lower than the initial offer level. Speaking of deals, another converter has purchased PP Homo Raffia cargoes of Thailand and Vietnam origins each at $45/ton and $20/ton lower than the initial offer levels. Moreover, a trader informed that import offers for PP Block Copolymer of South Korea origin remain unchanged from last week, at $1,040/ton. Whereas South Korean PP Random Copolymer offered at $1,100/ton but no comparison available due to non-regular supply. As SSESSMENTS.COM noted, all price changes are on a weekly interval and all offers are available on LC at sight, CIF Indonesia Main Port basis.
This week, Indonesia’s PP market is rather flat, SSESSMENTS.COM was told. Buyers shy away from fresh procurement activities due to sufficient inventory on hands coupled with the expectation of further downward price adjustments. Players cited that once the price goes down, buyers will likely wait for other low-priced cargoes to appear. On the supply side, some converters said that inventory on several traders’ end is rather high, especially for PP Homo Film grades.
For the outlook, the majority of Indonesian market players believe that PP prices, particularly for local materials, will likely move further down in the upcoming week considering market sentiment. Meanwhile, players opined to SSESSMENTS.COM that buying sentiment predicted to remain flat in the near future.
Local/localized PP offers on cash, FD Indonesia basis and excluding 10% VAT in all terms
| Origin | Product | Transaction Type | Offers (IDR/ton) | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | PP Block Copolymer | Price List | 16,000,000 | 1,097 | Cash In Advance |
| Indonesia | PP Homo Film | Offer Given | 15,900,000 | 1,090 | 30 Days Credit Term |
| Indonesia | PP Homo Film | Offer Received | 16,000,000 | 1,097 | 30 Days Credit Term |
| Indonesia | PP Homo Film | Price List | 16,130,000 | 1,106 | Cash In Advance |
| Thailand | PP Homo Film | Offer Received | 15,500,000 | 1,063 | Cash In Advance |
| Indonesia | PP Homo Injection | Offer Given | 15,000,000 | 1,029 | Cash In Advance |
| Indonesia | PP Homo Injection | Offer Given | 15,000,000 | 1,029 | 30 Days Credit Term |
| Indonesia | PP Homo Injection | Offer Received | 15,440,000 | 1,059 | 30 Days Credit Term |
| Indonesia | PP Homo Injection | Price List | 15,240,000 | 1,045 | Cash In Advance |
| Indonesia | PP Homo Raffia | Offer Given | 15,000,000 | 1,029 | Cash In Advance |
| Indonesia | PP Homo Raffia | Offer Given | 14,800,000-15,000,000 | 1,015-1,029 | 30 Days Credit Term |
| Indonesia | PP Homo Raffia | Price List | 15,240,000 | 1,045 | Cash In Advance |
| Malaysia | PP Homo Raffia | Offer Received | 14,800,000 | 1,015 | Cash In Advance |
| Indonesia | PP Random Copolymer Injection | Price List | 17,900,000-18,340,000 | 1,227-1,258 | Cash In Advance |
Import PP offers on LC at sight, CIF Indonesia Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Singapore | PP Block Copolymer | Price List | 1,050 |
| South Korea | PP Block Copolymer | Offer Given | 1,040 |
| South Korea | PP Block Copolymer | Offer Received | 1,020 |
| Saudi | PP Homo Raffia | Buy Idea | 920 |
| Saudi | PP Homo Raffia | Offer Given | 990 |
| Saudi | PP Homo Raffia | Offer Received | 990 |
| Saudi | PP Homo Raffia | Purchased | 960 |
| Saudi | PP Homo Raffia | Sell Idea | 950 |
| Saudi | PP Homo Raffia | Sold | 960 |
| Singapore | PP Homo Raffia | Price List | 990 |
| South Korea | PP Homo Raffia | Offer Given | 960 |
| Thailand | PP Homo Raffia | Offer Received | 1,060 |
| Thailand | PP Homo Raffia | Purchased | 1,015 |
| Vietnam | PP Homo Raffia | Buy Idea | 940 |
| Vietnam | PP Homo Raffia | Offer Received | 1,000-1,050 |
| Vietnam | PP Homo Raffia | Purchased | 990 |
| Singapore | PP Random Copolymer | Price List | 1,120 |
| South Korea | PP Random Copolymer | Offer Given | 1,100 |
Tags: Asia Pacific,English,Indonesia,PP,SEA,Weekly
Published on July 29, 2020 11:50 AM (GMT+8)
Last Updated on July 29, 2020 12:53 PM (GMT+8)
