CommoPlast

Local producer rollover PP, PE offers in Indonesia, buying interest remained weak.

insight 23 Oct 2023

Trading sentiment is rather heavy at the start of the week. Buyers continued waiting on the sidelines citing the ongoing weakening trend in the international market.


A key Indonesian producer reportedly rollover spot PP and PE offers on the first trading day of the week, shrugging off the rapid depreciation of the Rupiah against the US dollar, which usually pushes local prices higher. 

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

Material

Price List as of 23 Oct. 23

USD Equivalent

W.O.W Changes

USD Equivalent

Term

Combined and reported by CommoPlast

LL film

IDR 18,700,000

$1,180

-

-

FD Jabodetabek

mPE

IDR 20,380,000

$1,286

-

-

FD Jabodetabek

LL inj

IDR 19,300,000

$1,218

-

-

FD Jabodetabek

HD film

IDR 19,440,000

$1,227

-

-

FD Jabodetabek

HD yarn

IDR 19,440,000

$1,227

-

-

FD Jabodetabek

HD blow

IDR 19,780,000

$1,248

-

-

FD Jabodetabek

IPP (PP Film)

IDR 18,230,000

$1,150

-

-

FD Jabodetabek

PPH yarn

IDR 17,680,000

$1,116

-

-

FD Jabodetabek

PPH inj

IDR 17,680,000

$1,116

-

-

FD Jabodetabek

PP thin wall

IDR 18,230,000

$1,150

-

-

FD Jabodetabek

BOPP

IDR 18,000,000

$1,136

-

-

FD Jabodetabek

PP coating

IDR 18,000,000

$1,136

-

-

FD Jabodetabek

PP thermo

IDR 17,840,000

$1,126

-

-

FD Jabodetabek

PPRC

IDR 19,640,000

$1,239

-

-

FD Jabodetabek

PPBC

IDR 19,950,000

$1,259

-

-

FD Jabodetabek

*All prices are excluded of 11% VAT

*Exchange Rate: USD 1 = IDR 15,849

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

 

Trading sentiment is rather heavy at the start of the week. Buyers continued waiting on the sidelines citing the ongoing weakening trend in the international market. The general expectation at the moment is that the domestic market might soon follow suit.

“Even our own customers refused to place new PO for finished goods at the current prices. Everyone is waiting for larger discounts,” said, an HDPE bag maker.

 

In the distribution market, locally held Malaysian LLDPE film is offered in the range of IDR16,400,000 – 16,500,000/ton excluding VAT, which are way below the producer’s official price list. Another PE packaging converter added, “Although these cargoes are primarily used for mixing, our customers do not accept any higher price levels. The market is very challenging; hence, we would only make new purchases if our customers accepted the raw material costs.”