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Local maker slashed spot PP, PE offers in Indonesia on weak demand; exchange rateIndonesian customers have been expecting some downward adjustments from the producer, however, the aggressive pricing decisions were unaccounted for. |
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Over the weekend, a major Indonesian producer reportedly announced fresh PP and PE offers to domestic buyers with sharp reductions from the previous price list. The nosedive in the new offers is partly attributed to the appreciated Rupiah against the US dollar with weak demand in the background.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 01 Apr. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
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|
LL film |
IDR 17,790,000 |
$1,189 |
-IDR 560,000 |
-$37 |
FD Jabodetabek |
|
mPE |
IDR 19,690,000 |
$1,316 |
-IDR 200,000 |
-$13 |
FD Jabodetabek |
|
LL inj |
IDR 18,390,000 |
$1,229 |
-IDR 650,000 |
-$43 |
FD Jabodetabek |
|
HD film |
IDR 17,410,000 |
$1,163 |
-IDR 1,010,000 |
-$67 |
FD Jabodetabek |
|
HD yarn |
IDR 17,410,000 |
$1,163 |
-IDR 1,010,000 |
-$67 |
FD Jabodetabek |
|
HD blow |
IDR 17,790,000 |
$1,189 |
-IDR 870,000 |
-$58 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 17,860,000 |
$1,193 |
-IDR 1,150,000 |
-$77 |
FD Jabodetabek |
|
PPH yarn |
IDR 17,250,000 |
$1,153 |
-IDR 980,000 |
-$65 |
FD Jabodetabek |
|
PPH inj |
IDR 17,250,000 |
$1,153 |
-IDR 980,000 |
-$65 |
FD Jabodetabek |
|
PP thin wall |
IDR 17,790,000 |
$1,189 |
-IDR 1,220,000 |
-$82 |
FD Jabodetabek |
|
BOPP |
IDR 17,410,000 |
$1,163 |
-IDR 1,130,000 |
-$76 |
FD Jabodetabek |
|
PP coating |
IDR 17,410,000 |
$1,163 |
-IDR 1,130,000 |
-$76 |
FD Jabodetabek |
|
PP thermo |
IDR 17,560,000 |
$1,173 |
-IDR 1,210,000 |
-$81 |
FD Jabodetabek |
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PPRC |
IDR 19,150,000 |
$1,280 |
-IDR 1,290,000 |
-$86 |
FD Jabodetabek |
|
PPBC |
IDR 18,850,000 |
$1,260 |
-IDR 620,000 |
-$41 |
FD Jabodetabek |
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*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 14,965 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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Indonesian customers have been expecting some downward adjustments from the producer, however, the aggressive pricing decisions were unaccounted for. Still, market participants do not believe that the market is anywhere near the bottom citing the approaching Eid Fitr holiday.
“The finished goods market is weak in both PP and PE sectors. We do not expect strong pre-holiday replenishment activities unless suppliers agree to another round of drastic reductions,” added, a trader.
Throughout the early trading hours on Monday, 3 April 2023, there have been discussions on whether the producer would increase the offers after the crude oil prices rose 5%. Apparently, buyers here show no sign of panic buying while pointing to the absence of real demand, which could anchor any efforts in lifting PP and PE offers.
Country
Indonesia
