|
|
Key local producer in Indonesia slashes PE offers to counterbalance sluggish demandIn contrast to the firm stance from the maker, Indonesian traders started cutting prices right after the government announced the abolishment of the import quota system on 8 March 2024. |
|
On the final trading day of the week, a major local producer in Indonesia decided to slash spot PE offers to the domestic market in an effort to stimulate buying activities ahead of the long Ramadan holiday in April.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 22 Mar. 24 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 20,840,000 |
$1,329 |
-IDR 620,000 |
-$40 |
FD Jabodetabek |
|
mPE |
IDR 21,320,000 |
$1,360 |
-IDR 620,000 |
-$40 |
FD Jabodetabek |
|
LL inj |
IDR 21,430,000 |
$1,367 |
-IDR 620,000 |
-$40 |
FD Jabodetabek |
|
HD film |
IDR 20,460,000 |
$1,305 |
-IDR 620,000 |
-$40 |
FD Jabodetabek |
|
HD yarn |
IDR 20,460,000 |
$1,305 |
-IDR 620,000 |
-$40 |
FD Jabodetabek |
|
HD blow |
IDR 20,260,000 |
$1,292 |
-IDR 620,000 |
-$40 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 21,940,000 |
$1,399 |
- |
- |
FD Jabodetabek |
|
PPH yarn |
IDR 21,050,000 |
$1,342 |
- |
- |
FD Jabodetabek |
|
PPH inj |
IDR 21,050,000 |
$1,342 |
- |
- |
FD Jabodetabek |
|
PP thin wall |
IDR 21,610,000 |
$1,378 |
- |
- |
FD Jabodetabek |
|
BOPP |
IDR 22,170,000 |
$1,414 |
- |
- |
FD Jabodetabek |
|
PP coating |
IDR 22,170,000 |
$1,414 |
- |
- |
FD Jabodetabek |
|
PP thermo |
IDR 21,540,000 |
$1,374 |
- |
- |
FD Jabodetabek |
|
PPRC |
IDR 22,470,000 |
$1,433 |
- |
- |
FD Jabodetabek |
|
PPBC |
IDR 21,840,000 |
$1,393 |
- |
- |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,680 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
The producer has been facing tremendous downward pressure since its official price list has an enormous premium over the distribution market. In contrast to the firm stance from the maker, Indonesian traders started cutting prices right after the government announced the abolishment of the import quota system on 8 March 2024.
“Even after the latest price cuts, the producer’s offers are still too high. Further reductions are expected,” a market source commented.
As reported earlier, buyers are able to source locally held Malaysian HDPE film cargoes in the distribution market at IDR17,500,000/ton excluding VAT, which is nearly IDR 3,000,000/ton below the price list from the producer.
Even though Malaysia’s PrefChem is in mid of shutdown, market sources said that previously purchased cargoes have arrived in Indonesia, further stressing the already lethargic market. It is important to note that most converters are carrying 30-45 days’ worth of inventory and with the lengthy holiday ahead, buyers could stretch these stocks for even longer.
Indonesian converters will be away from 3 April to 15 April for Ramadan celebration.
