CommoPlast

Local PP, PE market in Indonesia extended the weakening trend

Over the past couple of weeks, Indonesian HDPE bag makers saw a spike in finished goods orders. However, the situation started to turn sour.



A key Indonesian producer announced weekly PP and PE offers over the weekend with additional decreases reflecting the constant downward pressure from soft demand and competitive import parcels.

The producer’s latest price list and changes compared to last week are shown in the following table: 

Material

Price List as of 13 May. 23

USD Equivalent

W.O.W Changes

USD Equivalent

Term

Combined and reported by CommoPlast

LL film

IDR 16,370,000

$1,104

-IDR 600,000

-$40

FD Jabodetabek

mPE

IDR 18,070,000

$1,218

-

-

FD Jabodetabek

LL inj

IDR 17,110,000

$1,154

-IDR 590,000

-$40

FD Jabodetabek

HD film

IDR 17,190,000

$1,159

-IDR 220,000

-$15

FD Jabodetabek

HD yarn

IDR 17,190,000

$1,159

-IDR 220,000

-$15

FD Jabodetabek

HD blow

IDR 18,150,000

$1,224

-

-

FD Jabodetabek

IPP (PP Film)

IDR 17,410,000

$1,174

-

-

FD Jabodetabek

PPH yarn

IDR 16,380,000

$1,104

-IDR 290,000

-$20

FD Jabodetabek

PPH inj

IDR 16,380,000

$1,104

-IDR 290,000

-$20

FD Jabodetabek

PP thin wall

IDR 17,330,000

$1,168

-IDR 300,000

-$20

FD Jabodetabek

BOPP

IDR 17,110,000

$1,154

-

-

FD Jabodetabek

PP coating

IDR 17,110,000

$1,154

-

-

FD Jabodetabek

PP thermo

IDR 16,820,000

$1,134

-IDR 290,000

-$20

FD Jabodetabek

PPRC

IDR 19,030,000

$1,283

-

-

FD Jabodetabek

PPBC

IDR 18,960,000

$1,278

+IDR 160,000

+$11

FD Jabodetabek

*All prices are excluded of 11% VAT

*Exchange Rate: USD 1 = IDR 14,831

*Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000

 

Over the past couple of weeks, Indonesian HDPE bag makers saw a spike in finished goods orders. However, the situation started to turn sour. The continuous drop in raw material prices has now encouraged end-product buyers to slow down to avoid potential price risks.

“Therefore, we also take a step back and only purchase two weeks’ worth of raw material. The market is full of uncertainties,” added, a manufacturer.

 

Meanwhile, the pressure on the PP market is tremendous. Buyers place bids at IDR15,300,000/ton excluding VAT for both yarn and injection grades – similar to deal levels done in the previous week.