Key Indonesian petrochemical producer lifted PP and PE prices on tighter supply outlook
A key Indonesian producer reportedly lifted spot PP and PE offers to domestic buyers over the weekend on the back of a tightening supply outlook ahead of a major maintenance schedule in May and the weak Rupiah.
A key Indonesian producer reportedly lifted spot PP and PE offers to domestic buyers over the weekend on the back of a tightening supply outlook ahead of a major maintenance schedule in May and the weak Rupiah.
The price adjustments entail a gradual increase, ranging between IDR 150,000 – IDR 300,000/ton, excluding the 11% VAT. These increments are strategically implemented to accommodate the forthcoming maintenance activities, scheduled from 07 May until 20 June 2024, rendering the company’s cracker facilities temporarily offline.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 02 Jan. 24 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 20,920,000 |
$1,290 |
+IDR 300,000 |
+$19 |
FD Jabodetabek |
|
mPE |
IDR 21,940,000 |
$1,353 |
+IDR 150,000 |
+$9 |
FD Jabodetabek |
|
LL inj |
IDR 21,720,000 |
$1,339 |
+IDR 300,000 |
+$19 |
FD Jabodetabek |
|
HD film |
IDR 20,710,000 |
$1,277 |
+IDR 130,000 |
+$8 |
FD Jabodetabek |
|
HD yarn |
IDR 20,570,000 |
$1,269 |
+IDR 140,000 |
+$9 |
FD Jabodetabek |
|
HD blow |
IDR 21,070,000 |
$1,299 |
+IDR 140,000 |
+$9 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 22,550,000 |
$1,391 |
+IDR 140,000 |
+$9 |
FD Jabodetabek |
|
PPH yarn |
IDR 21,580,000 |
$1,331 |
+IDR 150,000 |
+$9 |
FD Jabodetabek |
|
PPH inj |
IDR 21,580,000 |
$1,331 |
+IDR 150,000 |
+$9 |
FD Jabodetabek |
|
PP thin wall |
IDR 22,150,000 |
$1,366 |
+IDR 150,000 |
+$9 |
FD Jabodetabek |
|
BOPP |
IDR 22,720,000 |
$1,401 |
+IDR 150,000 |
+$9 |
FD Jabodetabek |
|
PP coating |
IDR 22,720,000 |
$1,401 |
+IDR 150,000 |
+$9 |
FD Jabodetabek |
|
PP thermo |
IDR 22,070,000 |
$1,361 |
+IDR 150,000 |
+$9 |
FD Jabodetabek |
|
PPRC |
IDR 23,760,000 |
$1,465 |
+IDR 160,000 |
+$10 |
FD Jabodetabek |
|
PPBC |
IDR 22,620,000 |
$1,395 |
+IDR 150,000 |
+$9 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 16,216 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
Indonesian customers remained generally cautious following active replenishment over the past couple of weeks. Many converters in the flexible packaging sector are still selling their end-products at the previous raw material costs, which now poses enormous challenges for local suppliers in convincing customers to accept the latest hikes.
“But we expect both PP and PE market to remain strong moving forward. The depreciating Rupiah coupled with reduced on-hand stocks among local traders would sufficiently support the current upswing,” a trader commented.
In fact, several local trading houses claimed to have limited ready stock parcels at the time of this report and with the tightening local supply outlook, Indonesian sellers would not pass the opportunity to introduce additional hikes on their offers.