Tri Polyta reviews supply

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)