Major local maker down-adjusted PP prices in Indonesia

A major domestic producer in Indonesia reportedly slashing offers for most of PP cargoes to local buyers by $10/ton week-on-week despite the perceived tightening supply in this market. Players are pointing to the persistently weak demand condition and the downward pressure from the import market as the main factor for the price decision. 

The producer’s latest price list and changes are shown in the following table:

Local PP supply in Indonesia might shrink to a certain extent as PT Polytama Propindo has taken its PP line off-stream since mid-July for 25 days maintenance. The plant has a nameplate capacity of 380,000 tons/year, however, only run at the rate 180,000 tons/year at the moment. 

“Demand is getting softer, even for PE. Though the producer’s price list see no changes on PE cargoes, distribution market has been giving discounts to push out quantity,” a trader commented.