Indonesia: Weak demand forced traders cut local prices

Players in Indonesia market reported that couple of local traders have reduced their homo-PP offer by $20/t today in the face of weaker buying interest. 

One of the traders offers locally held homo-PP cargoes at $1340/t FD Indonesia, excluding VAT said, “We cut our offers in spite of not having much quantity in hand. Local demand is just too weak and buyers claimed to have sufficient material now. We are open to negotiation with serious buyers and willing to give another $20/t discount for larger purchases with cash payment term.”

Another converter added, “Local prices have softened a bit today but we are not rush to make fresh purchases since we have sufficient inventories till June. We are monitoring the market very closely and might consider replenishment in the coming month as we are a bit concern about the local supply condition given the maintenance shutdown at one of the major producer.”

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