Indonesia’s PP import prices gain 2-4% on tight supply

03 December 2010 05:50  [Source: ICIS news]

SINGAPORE (ICIS)--Indonesia’s polypropylene (PP) import prices jumped 2-4% this week on the back of persistently tight supply amid reduced local production, industry sources said on Friday.

PP injection and yarn grades from different sources were sold at $1,430-1,520/tonne CFR (cost and freight) Indonesia for December shipment, up to $30/tonne (€23/tonne) or 2% higher from last week, they said.

Bi-axially oriented film grade PP (BOPP) from different sources was sold at $1,450-1,510/tonne CFR Indonesia for December shipment, rising as much as $60/tonne or 4% week on week.

Domestic supply had been tight since local producer, Polytama Propindo shut its 380,000 tonne/year plant in Balongan,West Java due to feedstock issues, Indonesian importers said.

Supply of IPP and thermoforming PP had been most affected by the shutdown, but local availability of other grades such as injection, yarn and BOPP had also been affected, local distributors said.

To cater to customers who typically buy from Polytama Propindo, other suppliers in Indonesia had increased their IPP and thermoforming PP output at the expense of injection, yarn and BOPP grades production, the distributors said.

The two other producers --Chandra Asri Petrochemical and Pertamina-- have a combined PP capacity of 405,000 tonnes/year.

Indonesia’s PP imports were expected to hit 500,000 tonnes this year, from the original estimate of 450,000 tonnes, due to Polytama Propindo’s production woes, the distributors said.

($1 = €0.76)

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By: Chow Bee Lin
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