Indonesia – Weekly PE Wrap Up - 19 August 2021
Indonesia – Weekly PE Wrap Up - 19 August 2021
Date: 19 August 2021
IMPORT MARKET
The number of new offers remains limited in the Indonesian import PE market this week as international suppliers withhold cargoes in preparation for the September shipment price announcement in the coming week. The market, however, remains on the firming track with Middle Eastern parcels are especially limited.
Thailand cargoes advanced another $10/ton to $1200/ton for HDPE film and $1240/ton for LLDPE film, all based on CIF Indonesia. A buyer commented, “End product demand has yet to fully recover, hence we prefer to source competitive local cargoes to avoid risks,” a packaging converter commented. The source added that declining crude oil prices erode market confidence to accept higher price levels.
In the meantime, Philippines LLDPE film cargoes are offered at $1250/ton CIF Indonesia. The supplier is collecting bids at $1210/ton but little changes from the reluctant responses from customers.
|
Import Prices |
|||
|
Grade |
Changes |
Price Range (USD/ton) |
Changes |
|
DUTIABLE ORIGINS |
|||
|
HDPE film |
- |
$1140 – 1240 |
- |
|
LLDPE film |
- $50 |
$1200 – 1280 |
- |
|
LDPE film |
- |
$1430 |
- |
|
NON-DUTIABLE ORIGINS |
|||
|
HDPE film |
- |
$1200 |
+$10 |
|
LLDPE film |
+$10 |
$1240 – 1280 |
- |
|
LDPE film |
- |
$1510 |
- |
|
**All based on CIF Indonesia, LC AS equivalent |
|||
LOCAL MARKET
A major local producer decided to lift spot LLDPE film offers to reflect the supply tightness in the international market. The price decision was directly contradicted by the reductions observed in the distribution market, signaling that actual demand is not as strong as expected.
Offers for LLDPE film cargoes in the distribution market are in a wide range due to the delivery time and payment terms differential. Apparently, some buyers prefer to take advantage of the longer payment term to ease pressure on the cash flow even it means paying slightly higher prices.
“Even though malls are reopening, demand for shopping bags remains weak. Consumers are adopting a cautious stance as the number of infection cases are still high, hence the low shopping malls patronage,” an HDPE bag converter reported.
In contrast, LDPE film registered a small gain following the strong rebound in the nearby China market. Yet, any sharp hike could push customers to the sidelines because spot LDPE film prices are already at the high range in Indonesia.
|
LOCAL PRICES |
|||||
|
Grade |
(-/+) |
Weekly Price Range |
(-/+) |
||
|
PRODUCERS PRICE LIST |
|||||
|
HDPE film |
- |
IDR 17,750,000 |
- |
IDR 18,400,000 |
- |
|
- |
$1,234 |
- |
$1,280 |
- |
|
|
HDPE B/M |
- |
IDR 17,890,000 |
- |
IDR 18,400,000 |
- |
|
- |
$1,244 |
- |
$1,280 |
- |
|
|
LLDPE film |
- |
IDR 18,620,000 |
- |
IDR 19,000,000 |
- |
|
- |
$1,295 |
- |
$1,321 |
- |
|
|
DISTRIBUTION MARKET |
|||||
|
HDPE film |
-IDR 150,000 |
IDR 17,100,000 |
- |
IDR 17,600,000 |
- |
|
-$10 |
$1,189 |
- |
$1,224 |
- |
|
|
HDPE B/M |
-IDR 100,000 |
IDR 17,800,000 |
- |
IDR 18,650,000 |
-IDR 100,000 |
|
-$7 |
$1,238 |
- |
$1,297 |
-$7 |
|
|
LLDPE film |
-IDR 300,000 |
IDR 18,100,000 |
- |
IDR 18,650,000 |
-IDR 100,000 |
|
-$21 |
$1,259 |
- |
$1,297 |
-$7 |
|
|
LDPE film |
IDR 100,000 |
IDR 21,900,000 |
- |
IDR 22,180,000 |
- |
|
$7 |
$1,523 |
- |
$1,542 |
- |
|
|
**All prices are excluded on 10% VAT, FD Indonesia |
|||||
|
**Exchange rate: USD 1 = IDR 14,380 |
|||||
OUTLOOK
The import market would likely firm up in the coming week as international suppliers open September shipment offers, which could help to halt the falling domestic prices. While players are hopeful of continuously improving demand conditions on the back of easing lockdown measures, the market is blanketed with cautiousness, which could slowdown replenishment activities.