Current PP Price Trend Believed To Prolong To The Upcoming Week, Will Demand In Indonesia Show Improvement?
- Local and import PP offers move in tandem, number of deals remain scanty
- PP allocation from the leading polyolefins producer in the country is limited
- Players expect further price adjustment next week
Indonesian market players believe that the current PP price trend will prolong to the upcoming week but they are questioning whether the demand will show any improvement. This week, SSESSMENTS.COM’s data showed that local and import PP offers in the country recorded on an uptrend. In the local market, the new price list for PP Homopolymer and Copolymer grades from the leading Indonesian polyolefins producer surfaced with an increment of between IDR360,000-380,000/ton ($25-26/ton) on a weekly comparison. Likewise, local offers for PP Homo Injection and PP Homo Raffia via traders went up by IDR300,000/ton ($21/ton) as compared to a fortnight ago. For localized cargoes, some converters received offers for Southeast Asian PP Homo Raffia from a trader at IDR14,100,000/ton ($978/ton) on cash, FD Indonesia basis and excluding 10% VAT, which is considered as high. To date, a trader stated that the number of bids and deals remain scanty as most players have just returned from Eid Al-Fitr holiday; hence, most are probably still examining the latest prices and gauging the market before making procurements.
In the import market, SSESSMENTS.COM noted that the latest offers for PP Homopolymer grades of Thailand origin have emerged with an increment of $20/ton from last week’s level. For Middle Eastern cargoes, a converter purchased PP Homo Film at $830/ton and decided to skip PP Homo Raffia cargoes offered at $810/ton. For Southeast Asian cargoes, deals for PP Homo Film from a Singaporean producer closed at $880/ton, or $40/ton lower than the initial offer level. All transactions are on LC at sight, CIF Indonesia Main Port basis
In general, demand for PP resins in the domestic market is sluggish this week. Aside from Indonesian market players just back from Eid Al-Fitr holiday, weak demand is also associated with sufficient stock from the converters’ end, citing that most of them might have already replenished their stocks before the holiday. Currently, most converters are still running production at a reduced rate but will gradually increase the capacity in-line with the market improvement in the days to come. For end-products, healthy demand is only seen for food packaging. On the supply front, a converter informed SSESSMENTS.COM that allocation for all PP grades from the leading Indonesian polyolefins producer is quite limited until the end of June as the producer obligated to fulfil the need of their contract customers in China.
Looking ahead, Indonesian market players contacted by SSESSMENTS.COM believe that the uptrend in PP prices will prolong to the upcoming weeks. Particularly for local offers, some players opined that further upward adjustment of between IDR300,000-500,000/ton ($21-34/ton) may be seen next week considering the supply condition. In terms of demand, no sign of improvement was observed but players hope that the market will be better next week following the easing of social restriction regulations.
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NewsSSESSMENTS: Indonesian Trader Disclosed Reason Behind The Spread Of Local and Localized PP Prices
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 | 15,000,000 | 1,041 | Cash In Advance |
| Indonesia | PP Homo Film | Offer Received | 15,300,000 | 1,062 | Cash In Advance |
| Indonesia | PP Homo Film | Offer Received | 15,300,000 | 1,062 | 30 Days Credit Term |
| Indonesia | PP Homo Film | Price List | 15,300,000 | 1,062 | Cash In Advance |
| Thailand | PP Homo Film | Offer Received | 15,200,000 | 1,055 | 15 Days Credit Term |
| Thailand | PP Homo Film | Purchased | 15,200,000 | 1,055 | 15 Days Credit Term |
| Indonesia | PP Homo Injection | Offer Given | 14,100,000 | 978 | Cash In Advance |
| Indonesia | PP Homo Injection | Offer Received | 14,800,000 | 1,027 | 30 Days Credit Term |
| Indonesia | PP Homo Injection | Offer Received | 14,470,000 | 1,004 | Cash In Advance |
| Indonesia | PP Homo Injection | Price List | 14,470,000 | 1,004 | Cash In Advance |
| Indonesia | PP Homo Injection | Purchased | 14,500,000 | 1,006 | 30 Days Credit Term |
| Indonesia | PP Homo Raffia | Offer Given | 14,100,000 | 978 | Cash In Advance |
| Indonesia | PP Homo Raffia | Offer Received | 13,950,000-14,800,000 | 968-1,027 | Cash In Advance |
| Indonesia | PP Homo Raffia | Price List | 14,470,000 | 1,004 | Cash In Advance |
| Southeast Asia | PP Homo Raffia | Offer Received | 14,100,000 | 978 | Cash In Advance |
| Southeast Asia | PP Homo Raffia | Offer Received | 14,400,000 | 999 | 30 Days Credit Term |
| Indonesia | PP Random Copolymer Injection | Price List | 16,920,000-17,400,000 | 1,174-1,207 | Cash In Advance |
Import PP offers on LC at sight, CIF Indonesia Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Middle East | PP Homo Film | Offer Received | 830 |
| Middle East | PP Homo Film | Purchased | 830 |
| Southeast Asia | PP Homo Film | Offer Given | 950 |
| Southeast Asia | PP Homo Film | Offer Received | 920 |
| Southeast Asia | PP Homo Film | Purchased | 880 |
| Southeast Asia | PP Homo Injection | Offer Given | 950 |
| Middle East | PP Homo Raffia | Offer Received | 810 |
| Southeast Asia | PP Homo Raffia | Offer Given | 950 |
Tags: Asia Pacific,English,Indonesia,PP,SEA,Weekly
Published on June 3, 2020 1:51 PM (GMT+8)
Last Updated on June 3, 2020 1:52 PM (GMT+8)
