CommoPlast

Key Indonesian producer slashed local PP, PE offers on currency exchange

Over the past week, the Rupiah appreciated by about 5% against the US dollar, driven by expectations of the Federal Reserve lowering key interest rates in September. A stronger local currency typically leads to a drop in commodity prices traded in that currency.



A key Indonesian producer has sharply reduced local PP and PE offers despite a shortage of ready-stock cargo and ongoing production disruptions. The appreciation of the Rupiah against the US dollar has prompted buyers to hold off on purchases, anticipating further price declines.

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

Material

Price List as of 17 Aug. 2024

USD Equivalent

W.O.W Changes

USD Equivalent

Term

Combined and reported by CommoPlast

LL film

IDR 17,730,000

$1,130

-IDR 1,140,000

-$73

FD Jabodetabek

mPE

IDR 20,680,000

$1,318

-IDR 900,000

-$57

FD Jabodetabek

LL inj

IDR 18,620,000

$1,187

-IDR 1,080,000

-$69

FD Jabodetabek

HD film

IDR 17,740,000

$1,131

-IDR 980,000

-$62

FD Jabodetabek

HD yarn

IDR 17,740,000

$1,131

-IDR 980,000

-$62

FD Jabodetabek

HD blow

IDR 18,380,000

$1,172

-IDR 750,000

-$48

FD Jabodetabek

IPP (PP Film)

IDR 18,600,000

$1,186

-IDR 600,000

-$38

FD Jabodetabek

PPH yarn

IDR 17,250,000

$1,099

-IDR 640,000

-$41

FD Jabodetabek

PPH inj

IDR 17,250,000

$1,099

-IDR 640,000

-$41

FD Jabodetabek

PP thin wall

IDR 17,880,000

$1,140

-IDR 660,000

-$42

FD Jabodetabek

BOPP

IDR 17,570,000

$1,120

-IDR 980,000

-$62

FD Jabodetabek

PP coating

IDR 17,570,000

$1,120

-IDR 980,000

-$62

FD Jabodetabek

PP thermo

IDR 17,730,000

$1,130

-IDR 650,000

-$41

FD Jabodetabek

PPRC

IDR 20,620,000

$1,314

-IDR 710,000

-$45

FD Jabodetabek

PPBC

IDR 19,410,000

$1,237

-IDR 620,000

-$40

FD Jabodetabek

*All prices are excluded of 11% VAT

*Exchange Rate: USD 1 = IDR 15,689

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

 

Over the past week, the Rupiah appreciated by about 5% against the US dollar, driven by expectations of the Federal Reserve lowering key interest rates in September. A stronger local currency typically leads to a drop in commodity prices traded in that currency.

“Offers from both the producer and the distribution market have dropped drastically. We hope buyers find the new prices attractive enough to return to the market,” commented a trader.

In related news, Chandra Asri is expected to restart its 900,000 tons/year cracker by the end of August following an unexpected shutdown in late July. Currently, the downstream PP and PE units are offline, but sources believe supply will return in September.

Since last week, Indonesian buyers have been limiting new purchases, partly due to the sluggish end-product businesses and the growing expectations over further price reductions. At the time of this report, buying sentiment remained sluggish as buyers prefer to assess the situation before making decisions.

 

Written by: Henny Sunarto

Edited by: Rochelle Nguyen


Country
Indonesia