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Local PP market in Indonesia surged sharply while PE remains dwindlingLocal PP market in Indonesia surged sharply while PE remains dwindling |
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A key domestic producer in Indonesia opened a fresh price list over the weekend with drastic hikes on the spot PP cargoes as the regional market extended the bull run. The maker, however, decided to keep PE unchanged after a surprising reduction the week before, subtly indicating the lack of support for this grade.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 28 Jan. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
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|
LL film |
IDR 18,200,000 |
$1,216 |
- |
- |
FD Jabodetabek |
|
mPE |
IDR 19,130,000 |
$1,278 |
- |
- |
FD Jabodetabek |
|
LL inj |
IDR 18,900,000 |
$1,262 |
- |
- |
FD Jabodetabek |
|
HD film |
IDR 18,390,000 |
$1,228 |
- |
- |
FD Jabodetabek |
|
HD yarn |
IDR 18,390,000 |
$1,228 |
- |
- |
FD Jabodetabek |
|
HD blow |
IDR 19,150,000 |
$1,279 |
+IDR 70,000 |
+$5 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 20,430,000 |
$1,364 |
+IDR 910,000 |
+$61 |
FD Jabodetabek |
|
PPH yarn |
IDR 19,650,000 |
$1,312 |
+IDR 910,000 |
+$61 |
FD Jabodetabek |
|
PPH inj |
IDR 19,650,000 |
$1,312 |
+IDR 910,000 |
+$61 |
FD Jabodetabek |
|
PP thin wall |
IDR 20,270,000 |
$1,354 |
+IDR 900,000 |
+$60 |
FD Jabodetabek |
|
BOPP |
IDR 20,120,000 |
$1,344 |
+IDR 910,000 |
+$61 |
FD Jabodetabek |
|
PP coating |
IDR 20,120,000 |
$1,344 |
+IDR 910,000 |
+$61 |
FD Jabodetabek |
|
PP thermo |
IDR 20,190,000 |
$1,348 |
+IDR 900,000 |
+$60 |
FD Jabodetabek |
|
PPRC |
IDR 20,920,000 |
$1,397 |
+IDR 300,000 |
+$20 |
FD Jabodetabek |
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PPBC |
IDR 20,440,000 |
$1,365 |
+IDR 450,000 |
+$30 |
FD Jabodetabek |
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*All prices are excluded of 10% VAT *Exchange Rate: USD 1 = IDR 14,973 |
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The latest hikes send a shockwave throughout the domestic market and motivate international suppliers to mimic the pricing movement. There have been reports that the producer also implemented large increases in contract PP prices for February.
“We think the producer might have overdone in their pricing strategy. The current prices would only push a few customers, who have not stocked up material sufficiently, to the import market. The rest of the buyers start to show stiff resistance,” a market source complained.
Meanwhile, it has been weeks that spot PE offers in Indonesia trailing behind PP. Supply for this grade is deemed comfortable in Indonesia amid the dwindling demand from the packaging sector.
