Indonesia local PP suppliers cut offers as import prices fall

SINGAPORE (ICIS)–Local polypropylene (PP) suppliers in Indonesia cut offers in the week to compete with imported cargoes, whose prices have been on a steady decline.

List prices for locally-produced PP flat yarn grade were at Indonesian rupiah (Rp) 15,570/kg DEL (delivered) Java, down from last week’s list price of Rp15,770/kg DEL Java.

International PP prices have come under pressure owing to bearish sentiment in the Chinese market and sluggish demand conditions.

In particular, imports from other ASEAN producers posed a competitive threat to the local producers in Indonesia.

Local sellers seeking to offload volumes had little option but to reduce offers in the domestic market to attract buyers.

Some market players noted a slight uptick in buying appetite, with several sellers receiving more inquiries from Indonesian buyers compared with the previous week.

Many buyers remain resistant to firmer prices given ample availability and the lack of any significant improvement in the Chinese market.

($1  = Rp13,983)

Photo: The Jakarta International Container Terminal (By Mast Irham/EPA/Shutterstock)