In Indonesia, persistent supply tightness in the country's local PP and PE markets has encouraged converters in the local market to pick up the pace of their purchases out of fears that tightening supply could force sellers to seek further price hikes over the near term. In addition to concerns about further price hikes, converters commented that they are also looking to build up some buffer stocks in case domestic materials become even harder to locate over the near term.

A distributor reported that they sold out their stocks of domestic PP and PE this week at prices equal to the new producer price level for both products, with the distributor claiming to have concluded deals at $1400/ton for homo-PP injection, $1440/ton for PP film, $1430/ton for HDPE film and $1480/ton for LLDPE film, all on an FD Indonesia, cash basis. The distributor attributed the rise in buying interest to converters' concerns about being able to locate sufficient amounts of prompt material.

When compared with the end of December, the producer price level in Indonesia has posted cumulative increases of $80/ton for homo-PP, $60-70/ton for LLDPE film and $40-70/ton for HDPE film.