Tri Polyta reviews supply

JAKARTA (JP): Publicly listed PT Tri Polyta Indonesia announced over the weekend that it had reopened negotiations on its long-term propylene supply with PT Chandra Asri.

Chief Executive Officer of Tri Polyta, Markus Hartanto said that the negotiations would focus on the price and volume of the commodity.

The company said in a statement that the negotiations were done in light of the significant changes in regional market conditions and medium-term outlook.

"The changes have arisen due to the aggressive pricing and market share policy taken by our main domestic competitor in combination with a regional polypropylene oversupply," the statement said.

Over the last six months, approximately 1.3 million metric tons of new propylene capacity have been added in Asia. High rates of capacity growth will continue over the next two years with over one million additional metric tons.

The statement said that such a condition had applied downward pressure on finished product prices while at the same time drying up merchant supplies of feedstock, keeping prices high. (bnt)