PP market reaches 4-month high in Indonesia
In addition to the ongoing supply issues, the firming in the local homo-PP market is also attributed to the depreciation of the Indonesian rupiah against the US dollar. According to the weekly average data from ChemOrbis Price Index, the local PP market in Indonesia has been hovering around at a four-month high recently.
An Indonesian producer elected to lift its homo-PP film offers by IDR150,000/ton ($10/ton) on the week while keeping its offers stable for other PP grades.
A few traders opined, “PP supplies in Indonesia are still tight. The depreciation of the rupiah also continues to push buyers to source local cargoes rather than imports. Considering these factors, we expect local PP prices to retain their strength in the days ahead.”
When it comes to the import homo-PP market, Indonesian players have started to receive initial offers for November.
A Southeast Asian producer was the first one to announce its November offers to the country and elected to lift its new offers significantly by $60/ton for homo-PP grades.
The weekly average of ChemOrbis Price Index also suggests that import PP prices are currently standing at their highest levels of the last four months, while some players are suspicious about the sustainability of the rising trend.
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