In Indonesia, domestic producers have announced their second PP price increase for February this week, raising prices by $20/ton for all PP products owing to persistently limited supply in the local market.

Producers had announced initial increases of $20/ton for homo-PP injection and raffia and $30/ton for PP film last week, bringing the total increase from the late January offer level to $40/ton for injection and raffia and $50/ton for film. The new producer price level stands at $1470/ton for homo-PP injection and raffia and $1520/ton for PP film, all on an FD Indonesia, cash basis.

In spite of the tightness in local availability, distributors complain that they are seeing poor demand from end users and that they are having difficulty achieving satisfactory sales even considering their reduced allocations. Some distributors commented that they are offering prompt cargoes to the local market with discounts of $10-20/ton when compared with the producer price level in hopes of speeding up their sales ahead of the holidays.

Source : www.Chemorbis.com