CommoPlast

Accelerated downtrend in Indonesia's local PP and PE market amid bearish short-term outlook

This move was anticipated by market participants and aligns with the downward trend set by the producer for the third quarter term contract settlements.



On the first trading day of July, a major local producer in Indonesia announced significant weekly reductions in spot prices for polypropylene (PP) and polyethylene (PE). This move was anticipated by market participants and aligns with the downward trend set by the producer for the third quarter term contract settlements.

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

Material

Price List as of 29 Jun. 2024

USD Equivalent

W.O.W Changes

USD Equivalent

Term

Combined and reported by CommoPlast

LL film

IDR 20,610,000

$1,260

-IDR 610,000

-$37

FD Jabodetabek

mPE

IDR 22,470,000

$1,374

+IDR 50,000

+$3

FD Jabodetabek

LL inj

IDR 21,560,000

$1,318

-IDR 280,000

-$17

FD Jabodetabek

HD film

IDR 20,230,000

$1,237

-IDR 440,000

-$27

FD Jabodetabek

HD yarn

IDR 20,230,000

$1,237

-IDR 280,000

-$17

FD Jabodetabek

HD blow

IDR 20,740,000

$1,268

-IDR 440,000

-$27

FD Jabodetabek

IPP (PP Film)

IDR 20,740,000

$1,268

-IDR 1,430,000

-$87

FD Jabodetabek

PPH yarn

IDR 19,730,000

$1,206

-IDR 1,110,000

-$68

FD Jabodetabek

PPH inj

IDR 19,730,000

$1,206

-IDR 1,110,000

-$68

FD Jabodetabek

PP thin wall

IDR 20,240,000

$1,237

-IDR 1,190,000

-$73

FD Jabodetabek

BOPP

IDR 20,240,000

$1,237

-IDR 1,110,000

-$68

FD Jabodetabek

PP coating

IDR 20,240,000

$1,237

-IDR 1,110,000

-$68

FD Jabodetabek

PP thermo

IDR 20,230,000

$1,237

-IDR 770,000

-$47

FD Jabodetabek

PPRC

IDR 22,720,000

$1,389

+IDR 50,000

+$3

FD Jabodetabek

PPBC

IDR 21,230,000

$1,298

-IDR 610,000

-$37

FD Jabodetabek

*All prices are excluded of 11% VAT

*Exchange Rate: USD 1 = IDR 16,357

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

 

Buyers have shown reluctance to commit to new purchases immediately, opting instead to evaluate the near-term market outlook. Compared to localized Malaysian high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE) film cargoes, the latest offers from the Indonesian producer are perceived as less attractive by market sources.

“On the other hand, the shorter lead time advantage might still attract customers,” a distributor commented.

Ongoing port congestion and shipping delays have significantly impacted import arrivals, even for nearby shipments. Consequently, many converters are compelled to source prompt local cargoes at higher price levels to bridge the supply gap.

 

Written by: Henny Sunarto

Edited by: Rochelle Nguyen


Country
Indonesia