CommoPlast

Indonesian major cut local PP, PE offers further as the bear run persists

Trading sentiment remains subdued at the start of the week, with buyers withdrawing to the sidelines to assess the near-term outlook.



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

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

*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

 

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