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Indonesian major cut local PP, PE offers further as the bear run persistsTrading sentiment remains subdued at the start of the week, with buyers withdrawing to the sidelines to assess the near-term outlook. |
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The Indonesian market is currently navigating the implications of a major local producer's latest price list, which features significant reductions in both PP and PE cargo prices. This marks the second consecutive week of aggressive price cuts, which market participants attribute to easing supply conditions and sluggish demand.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 06 Jul. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
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|
LL film |
IDR 19,590,000 |
$1,204 |
-IDR 1,020,000 |
-$63 |
FD Jabodetabek |
|
mPE |
IDR 21,720,000 |
$1,335 |
-IDR 750,000 |
-$46 |
FD Jabodetabek |
|
LL inj |
IDR 20,410,000 |
$1,254 |
-IDR 1,150,000 |
-$71 |
FD Jabodetabek |
|
HD film |
IDR 19,010,000 |
$1,168 |
-IDR 1,220,000 |
-$75 |
FD Jabodetabek |
|
HD yarn |
IDR 19,010,000 |
$1,168 |
-IDR 1,220,000 |
-$75 |
FD Jabodetabek |
|
HD blow |
IDR 19,590,000 |
$1,204 |
-IDR 1,150,000 |
-$71 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 19,750,000 |
$1,214 |
-IDR 990,000 |
-$61 |
FD Jabodetabek |
|
PPH yarn |
IDR 18,600,000 |
$1,143 |
-IDR 1,130,000 |
-$69 |
FD Jabodetabek |
|
PPH inj |
IDR 18,600,000 |
$1,143 |
-IDR 1,130,000 |
-$69 |
FD Jabodetabek |
|
PP thin wall |
IDR 19,260,000 |
$1,183 |
-IDR 980,000 |
-$60 |
FD Jabodetabek |
|
BOPP |
IDR 19,090,000 |
$1,173 |
-IDR 1,150,000 |
-$71 |
FD Jabodetabek |
|
PP coating |
IDR 19,090,000 |
$1,173 |
-IDR 1,150,000 |
-$71 |
FD Jabodetabek |
|
PP thermo |
IDR 19,090,000 |
$1,173 |
-IDR 1,140,000 |
-$70 |
FD Jabodetabek |
|
PPRC |
IDR 21,720,000 |
$1,335 |
-IDR 1,000,000 |
-$61 |
FD Jabodetabek |
|
PPBC |
IDR 20,240,000 |
$1,244 |
-IDR 990,000 |
-$61 |
FD Jabodetabek |
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*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 16,275 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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As reported earlier, Chandra Asri is in the process of restarting its petrochemical complex in Cilegon, Indonesia, following a major planned maintenance shutdown. The resumption of operations at these plants has reassured the market of increased supply, which may coincide with the arrival of previously purchased imported cargoes.
"The extent of the price cut is shocking. The gap between the producer’s official price list and the distribution market is narrowing rapidly, potentially placing local traders in a very unfavorable position," commented an industry insider.
Trading sentiment remains subdued at the start of the week, with buyers withdrawing to the sidelines to assess the near-term outlook. The producer's continuous and aggressive price reductions have severely undermined market confidence, leading customers to postpone new purchases until the market stabilizes.
Written by: Henny Sunarto
Edited by: Rochelle Nguyen
Country
Indonesia
