CommoPlast Article

An influential Indonesian petrochemical producer has announced new weekly spot PP and PE offers to the domestic market, maintaining prices at stable to slightly higher levels despite the appreciation of the Rupiah against the US dollar. Typically, a stronger Rupiah would exert downward pressure on local commodity prices.

Sources revealed that the producer has significantly reduced its LLDPE contract allocation for December 2024 by 50%. This drastic cut has triggered speculation about potential production disruptions at the plant, although no official confirmation has been issued.

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

Material	Price List as of 02 Dec. 2024	USD Equivalent	W.O.W Changes	USD Equivalent	Term
*Combined and reported by CommoPlast*
LL film	IDR 17,910,000	$1,131	+IDR 20,000	+$1	FD Jabodetabek
mPE	IDR 20,950,000	$1,323	+IDR 30,000	+$2	FD Jabodetabek
LL inj	IDR 18,800,000	$1,187	+IDR 30,000	+$2	FD Jabodetabek
HD film	IDR 17,520,000	$1,106	+IDR 30,000	+$2	FD Jabodetabek
HD yarn	IDR 18,090,000	$1,142	+IDR 20,000	+$1	FD Jabodetabek
HD blow	IDR 19,070,000	$1,204	+IDR 30,000	+$2	FD Jabodetabek
IPP (PP Film)	IDR 19,320,000	$1,220	-	-	FD Jabodetabek
PPH yarn	IDR 17,790,000	$1,123	-	-	FD Jabodetabek
PPH inj	IDR 17,790,000	$1,123	-	-	FD Jabodetabek
PP thin wall	IDR 18,350,000	$1,159	-	-	FD Jabodetabek
BOPP	IDR 18,060,000	$1,140	-	-	FD Jabodetabek
PP coating	IDR 18,060,000	$1,140	-	-	FD Jabodetabek
PP thermo	IDR 18,210,000	$1,150	-	-	FD Jabodetabek
PPRC	IDR 21,120,000	$1,334	-	-	FD Jabodetabek
PPBC	IDR 19,620,000	$1,239	-	-	FD Jabodetabek
All prices are excluded of 11% VAT Exchange Rate: USD 1 = IDR 15,838 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000

The announcement of reduced LLDPE allocation has prompted distributors to aggressively raise prices for this grade. Latest offers for LLDPE film have been quoted at IDR 18,300,000/ton (excluding VAT), representing an increase of IDR 390,000/ton over the producer's most recent price list.

Market reactions to the price adjustments have been mixed. One market participant noted that while the hikes may appear justifiable given the supply crunch, the sustainability of this trend remains uncertain. "Demand for LLDPE is weak, which raises questions about whether these elevated prices are sustainable," the participant commented.

In contrast, local traders have opted not to adjust forward-selling offers, signalling a lack of confidence in the market’s resilience.

Meanwhile, demand for PP cargoes in Indonesia has softened following substantial restocking activity during the previous week. Buyers reportedly secured localized Malaysian homo-PP cargoes at IDR 16,800,000/ton excluding VAT ($1,056/ton) for January 2025 delivery.

Indonesian producer kept local PP; PE offers firm amid reduced LLDPE allocation