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Indonesia players reported seeing import homo-PP from Middle East breached below the $1000/ton threshold as persistent weak demand in Indonesia and other major regional markets convince sellers to commit discounts.

A buyer purchased the cargoes at $995/ton CIF Indonesia, LC AS term said, “We only replenished a small quantity of material as we believed that market might face more downward pressure during the fasting month in June. Local supply is still not sufficient, however, buyers are not in rush to buy additional quantity amid bearish expectation for end product demand.”

Another buyer received offers for Saudi Arabia homo-PP at $1000/ton CIF Indonesia, LC AS term added, “We placed bid at $40/ton lower, but our supplier did not accept. We are still having sufficient inventories at the moment; therefore we might wait further before making replenishment.”

Players are expecting the current bearish sentiment to sustain through June, as fasting month in Muslim countries might deter strong buying interest, in spite of firm upstream value and tight supply condition. However, many are more optimistic about the demand condition during the second half of July.

Import homo-PP to Indonesia is currently reported at $995-1190/ton, CIF Indonesia, LC AS term.