S. Asian homo-PP concluded lower in Indonesia

After couple of weeks holding firm on offers, Southeast Asian homo-PP sellers today decided to lower their prices for deals concluded in Indonesia due to strong buyer’s resistance.

A buyer purchased Thailand homo-PP yarn at $1120/ton CIF, LC AS term, some $50/ton lower than initial offer inform, “We just purchase in small quantity as domestic market remain weak. We hope with the government’s recent move to revamp the economy, local demand would pick up in a faster pace.”

Meanwhile, Vietnamese homo-PP injection also received $20/ton discount to close deal at $1090/ton CIF Indonesia, LC AS term. A buyer procured the cargoes said, “We have stock up two months worth of inventories as we think market is nearing the bottom, and that room for further reduction is really limited. Just that our supplier refused to negotiate on yarn cargoes. Demand for our end product remains stable.”

Players in the country are currently divided on their opinions regarding the near term outlook with some are holding expectation to see further price cut. However, given some early signs that buyers are gradually accepting the lower end of the overall price range to restock cargoes, the extent of any reduction might be limited.  Import homo-PP to the country is currently reported at $1090-1170/ton CIF Indonesia, LC AS term.