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Local producer kept spot PP, PE offers stable to soft in Indonesia on weak demandIn the PP sector, the producer maintained a significant premium over the import market, which players deemed unreasonable and would only push buyers to overseas cargoes. |
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Over the weekend, a key domestic producer in Indonesia opened weekly PP and PE offers at stable to softer levels as demand continues to deteriorate due to the bearish economic outlook while buyers started to embrace the Ramadan season.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 18 Mar. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
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|
LL film |
IDR 18,660,000 |
$1,215 |
+IDR 40,000 |
+$3 |
FD Jabodetabek |
|
mPE |
IDR 19,890,000 |
$1,295 |
-IDR 430,000 |
-$28 |
FD Jabodetabek |
|
LL inj |
IDR 19,350,000 |
$1,260 |
+IDR 40,000 |
+$3 |
FD Jabodetabek |
|
HD film |
IDR 18,890,000 |
$1,230 |
-IDR 120,000 |
-$8 |
FD Jabodetabek |
|
HD yarn |
IDR 18,890,000 |
$1,230 |
-IDR 120,000 |
-$8 |
FD Jabodetabek |
|
HD blow |
IDR 19,120,000 |
$1,245 |
-IDR 190,000 |
-$12 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 19,160,000 |
$1,247 |
- |
- |
FD Jabodetabek |
|
PPH yarn |
IDR 18,390,000 |
$1,197 |
- |
- |
FD Jabodetabek |
|
PPH inj |
IDR 18,390,000 |
$1,197 |
- |
- |
FD Jabodetabek |
|
PP thin wall |
IDR 19,160,000 |
$1,247 |
- |
- |
FD Jabodetabek |
|
BOPP |
IDR 18,700,000 |
$1,218 |
- |
- |
FD Jabodetabek |
|
PP coating |
IDR 18,700,000 |
$1,218 |
- |
- |
FD Jabodetabek |
|
PP thermo |
IDR 18,930,000 |
$1,233 |
- |
- |
FD Jabodetabek |
|
PPRC |
IDR 20,440,000 |
$1,331 |
-IDR 270,000 |
-$18 |
FD Jabodetabek |
|
PPBC |
IDR 19,470,000 |
$1,268 |
- |
- |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,359 *Transportation Cost: West Java = IDR 60.000, Central Java & East Java = IDR 250.000 |
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In the PP sector, the producer maintained a significant premium over the import market, which players deemed unreasonable and would only push buyers to overseas cargoes. This is particularly the case when converters in both the woven bag and household products sectors suffer from a persistently sluggish business for several months now.
“It is also interesting that the producer sold spot LLDPE film cargoes to China at rather low levels but maintained a firm stance on domestic allocations. These prices are unacceptable to us; hence, we prefer to only source small quantities in the distribution market moving forward,” said, a buyer.
Indonesia joins other key Muslim markets around to world to welcome the start of Ramadan month this Wednesday, 22 March 2023. The finished goods demand has been falling. Some HDPE bag makers even reported a 50% drop in new PO compared to February.
In addition, the emergence of materials from the newly startup plant in Malaysia would continue to weigh on the sentiment heavily.
