Import prices of polypropylene are on the rise in Indonesia amid limited avails, rising by 60-70 dollars to US$1790/ton, as per EMPO Interactive. PP supplies have been impacted by yet another fire at Formosa Petrochemical Corp. Formosa Plastics has reduced run rates at two of its polypropylene units on account of shortage of feedstock propylene, after a fire at feedstock supplier Formosa Petrochemical Corp.'s Mailiao refinery over the weekend. Besides Formosa, Petro Rabigh has also suspended August import business to China following current or previous shutdowns. Inside China, several PP producers including Sinopec Sabic Tianjin Petrochemical, Dushanzi Petrochemical and Yanshan Petrochemical had earlier shut their plants either for maintenance or on feedstock shortage.
Players in Indonesia's domestic market await resumption of operations at PT Polytama Propindo to reduce reliance on imports. Polytama had halted operations in August 2010 due to debt problems with state-run oil company PT Pertamina. The state oil and gas firm has also stopped the polypropylene supply from its Balongan refinery. When it was still operating, Polytama supplied 320,000 tpa of polypropylene, totaling to 35% of the national demand of 990,000 tons.
05-Aug-11 
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