SINGAPORE (ICIS)--Spot polypropylene (PP) demand in Indonesia was not bolstered by the legislative elections. Prices declined on the back of the weak downstream demand amid the strengthened currency and the rainy season during the week ended 28 March.
PP yarn prices took the biggest tumble, with a local producer offering at $1,640/tonne DEL Java, a reduction of $20/tonne from the previous week.
A separate local producer offered at $1,635/tonne DEL Java, down by $5/tonne from the previous week.Woven bags are one of the major applications for PP yarn.
A woven bag manufacturer said that the consumption has been weak since the floods in January. The continued rains weakened the buying sentiments as the downstream demand for commodity-packaging declined.
“The (Indonesian currency) rupiah has gained about 8% this month,” said the manufacturer. The buyers are not committing to purchases until the currency stabilises, he added.
The legislative elections are slated to take place on 9 April.
Despite the elections-related activities, most market participants said that that the boost is unlikely to fully offset the bearish sentiments in the PP market.