Limited PP supply support buying interest in Indonesia

Market players reported that demand for PP in Indonesia sees a pick up at the end of the week as overseas suppliers halt offering towards the Chinese New Year holidays season.

A trader said, “We have not received any fresh offer this week and we are kind of panic now due to lack of inventory in hand. We hope to see some cargoes in the market after Chinese New Year as we are planning to purchase some Southeast Asian parcels.”

Another international trader informed, “We were testing the market at $910/t CIF SEA market at the beginning of the week, however we have suspended our offers now as we expect some price hike after the holidays.”

In another news, TPC Singapore reportedly reduced monthly PP allocation for its customers as much as 50% due to the company is running at reduced rate as a result of lack of propylene supply after Shell Singapore unexpectedly shutdown at the beginning of Dec 2015. Market sources expected this quantity cut to last until Aug 2016.

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