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Indonesian producer cut weekly PP prices; surprised the market with hikes on PEWhile the increases in PE offers were attributed to the depreciation of the Rupiah against the US dollar, the diverged price trend between PP and PE markets raised many questions. |
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Indonesian market participants were puzzled by the latest price announcement from a key domestic producer, who lifted spot PE prices even though demand has been weakening ahead of the Ramadan season.
The producer’s latest price list and changes compared to last week are shown in the following table:
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Material |
Price List as of11 Mar. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
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|
LL film |
IDR 18,620,000 |
$1,204 |
+IDR 150,000 |
+$10 |
FD Jabodetabek |
|
mPE |
IDR 20,320,000 |
$1,314 |
+IDR 240,000 |
+$16 |
FD Jabodetabek |
|
LL inj |
IDR 19,310,000 |
$1,249 |
+IDR 150,000 |
+$10 |
FD Jabodetabek |
|
HD film |
IDR 19,010,000 |
$1,229 |
+IDR 150,000 |
+$10 |
FD Jabodetabek |
|
HD yarn |
IDR 19,010,000 |
$1,229 |
+IDR 150,000 |
+$10 |
FD Jabodetabek |
|
HD blow |
IDR 19,310,000 |
$1,249 |
+IDR 150,000 |
+$10 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 19,160,000 |
$1,239 |
-IDR 230,000 |
-$15 |
FD Jabodetabek |
|
PPH yarn |
IDR 18,390,000 |
$1,189 |
-IDR 240,000 |
-$16 |
FD Jabodetabek |
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PPH inj |
IDR 18,390,000 |
$1,189 |
-IDR 240,000 |
-$16 |
FD Jabodetabek |
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PP thin wall |
IDR 19,160,000 |
$1,239 |
-IDR 740,000 |
-$48 |
FD Jabodetabek |
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BOPP |
IDR 18,700,000 |
$1,209 |
-IDR 390,000 |
-$25 |
FD Jabodetabek |
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PP coating |
IDR 18,700,000 |
$1,209 |
-IDR 390,000 |
-$25 |
FD Jabodetabek |
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PP thermo |
IDR 18,930,000 |
$1,224 |
-IDR 230,000 |
-$15 |
FD Jabodetabek |
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PPRC |
IDR 20,710,000 |
$1,339 |
+IDR 170,000 |
+$11 |
FD Jabodetabek |
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PPBC |
IDR 19,470,000 |
$1,259 |
+IDR 150,000 |
+$10 |
FD Jabodetabek |
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*All prices are excluded of 10% VAT *Exchange Rate: USD 1 = IDR 15,462 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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While the increases in PE offers were attributed to the depreciation of the Rupiah against the US dollar, the diverged price trend between PP and PE markets raised many questions. This is particularly the case when the PE packaging sector has been limiting restocking for several weeks in a row in anticipation of reduced orders during the fasting month.
“Besides, buyers can source more competitive materials from the new Malaysian plant from the distribution market. There are simply no supports for a rebound from both the demand and supply side,” added, a frustrating buyer.
Several PE bag manufacturers told CommoPlast they have reduced finished goods selling prices to secure more PO before the festive demand is over.
