Indonesia – Weekly PE Wrap Up - 03 December 2021
Indonesia – Weekly PE Wrap Up - 03 December 2021
Date: 02 December 2021
IMPORT MARKET
At the time of this report, most international suppliers have concluded December shipment businesses with discounts. Transactions are done in small quantities given the limited supply condition, especially among Middle Eastern sellers.
Canada LLDPE film is concluded at $1280/ton CIF Indonesia – the lowest level reported in the market at the moment. “We decided to buy because of the concerns over the shipping issue. This is an appointed grade, and we do not wish delay in shipment. In the meantime, we are looking for substitute cargoes in the local ground,” a manufacturer added.
Thailand HDPE film holds steady at $1300/ton CIF Indonesia and unavoidably bump into stiff resistance. Customers are expressing buy ideas at way lower than the price list, citing the competitive local materials.
|
Import Prices |
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|
Grade |
Changes |
Price Range (USD/ton) |
Changes |
||
|
DUTIABLE ORIGINS |
|||||
|
HDPE film |
-$20 |
$1,260 |
- |
$1,330 |
+$20 |
|
LLDPE film |
-$10 |
$1,280 |
- |
$1,310 |
-$10 |
|
LDPE film |
- |
$1,580 |
- |
$1,660 |
- |
|
NON-DUTIABLE ORIGINS |
|||||
|
HDPE film |
- |
$1,300 |
- |
$1,320 |
- |
|
LLDPE film |
- |
$0 |
- |
$0 |
- |
|
LDPE film |
- |
$1,710 |
- |
$1,720 |
- |
|
**All based on CIF Indonesia, LC AS equivalent |
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EXPORT MARKET
Soft local market encourages a key domestic producer to lower export LLDPE film offers by $50/ton week-on-week to $1270/ton CIF Vietnam term. Deals are limited amid the bearish outlook that push international customers to adopt a wait and see stance.
LOCAL MARKET
While the domestic PE market in Indonesia is obviously more competitive than imports at the moment, buyers here are just not in the mood to make replenishment, forcing local sellers to further reduce offers.
Weak end product businesses coupled with the plunging crude oil market severely hurt trading sentiment here. “We are operating only three day a week because there is no new orders for our finished goods. Customers refused to accept the current levels, however, we are unable to lower selling prices considering the potentially higher operating costs in the coming month,” a LLDPE packaging converter reported.
Even customers in the HDPE packaging market, which has been enjoying better demand in recent weeks, are waiting on the sideline. The expectations are that spot HDPE film would fall below the IDR 18,000,000/ton ($1250/ton) threshold given the persistently sluggish trading sentiment.
While demand for LDPE film is not stronger than HDPE and LLDPE film grades, the delays in import arrivals keep offers for this grade on the firming track. A number of buyers have switched to alternative to reduce raw material costs as a result.
|
LOCAL PRICES (As of 02 Dec 2021) |
|||||
|
Grade |
(-/+) |
Weekly Price Range |
(-/+) |
||
|
PRODUCERS PRICE LIST |
|||||
|
HDPE film |
-IDR 210,000 |
IDR 19,610,000 |
- |
IDR 19,800,000 |
- |
|
-$15 |
$1,368 |
- |
$1,381 |
- |
|
|
HDPE B/M |
-IDR 960,000 |
IDR 19,970,000 |
- |
IDR 20,300,000 |
- |
|
-$67 |
$1,393 |
- |
$1,416 |
- |
|
|
LLDPE film |
-IDR 130,000 |
IDR 20,640,000 |
- |
IDR 20,900,000 |
- |
|
-$9 |
$1,439 |
- |
$1,457 |
- |
|
|
DISTRIBUTION MARKET |
|||||
|
HDPE film |
-IDR 250,000 |
IDR 18,450,000 |
- |
IDR 18,800,000 |
-IDR 200,000 |
|
-$17 |
$1,287 |
- |
$1,311 |
-$14 |
|
|
HDPE B/M |
-IDR 650,000 |
IDR 18,900,000 |
- |
IDR 19,500,000 |
-IDR 500,000 |
|
-$45 |
$1,318 |
- |
$1,360 |
-$35 |
|
|
LLDPE film |
-IDR 350,000 |
IDR 19,100,000 |
- |
IDR 19,500,000 |
-IDR 400,000 |
|
-$24 |
$1,332 |
- |
$1,360 |
-$28 |
|
|
LDPE film |
+IDR 100,000 |
IDR 25,800,000 |
- |
IDR 27,500,000 |
+IDR 500,000 |
|
+$7 |
$1,799 |
- |
$1,918 |
+$35 |
|
|
**All prices are excluded on 10% VAT, FD Indonesia |
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|
**Exchange rate: USD 1 = IDR 14,349 |
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OUTLOOK
Trading sentiment might remain soft in the coming week as market players assess the impact of the falling energy complex on the price trend. The sluggish buying activities observed across the Asian region might force international suppliers to further step back on the offers to Indonesia.