Jan 20, 2022 3:46 p.m.

Domestic producer introduces steep cuts on PP cargoes in Indonesia, PE unchanged

Sources said that the persistently weak demand and the recent corrections in the import ground are attributed to the latest price reductions.

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Indonesian customers reported having received fresh PP and PE offers from a key domestic producer with sharp reductions on homo-PP grades, while PE holds largely unchanged week-on-week. Sources said that the persistently weak demand and the recent corrections in the import ground are attributed to the latest price reductions. 

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

Material

Price List as of06 Dec. 21

USD Equivalent

W.O.W Changes

USD Equivalent

Term

Combined and reported by CommoPlast

LL film

IDR 20,640,000

$1,422

-

-

FD Jabodetabek

mPE

IDR 22,540,000

$1,553

-

-

FD Jabodetabek

LL inj

IDR 21,640,000

$1,491

-

-

FD Jabodetabek

HD film

IDR 19,610,000

$1,351

-

-

FD Jabodetabek

HD yarn

IDR 19,500,000

$1,343

-

-

FD Jabodetabek

HD blow

IDR 19,970,000

$1,376

-

-

FD Jabodetabek

IPP (PP Film)

IDR 20,480,000

$1,411

-IDR 1,290,000

-$89

FD Jabodetabek

PPH yarn

IDR 19,710,000

$1,358

-IDR 1,300,000

-$90

FD Jabodetabek

PPH inj

IDR 19,570,000

$1,348

-IDR 1,150,000

-$79

FD Jabodetabek

BOPP

IDR 20,320,000

$1,400

-IDR 1,290,000

-$89

FD Jabodetabek

PP coating

IDR 20,320,000

$1,400

-IDR 1,290,000

-$89

FD Jabodetabek

PP thermo

IDR 19,890,000

$1,370

-IDR 1,290,000

-$89

FD Jabodetabek

PPRC

IDR 24,290,000

$1,673

-IDR 290,000

-$20

FD Jabodetabek

PPBC

IDR 21,930,000

$1,511

-IDR 570,000

-$39

FD Jabodetabek

*All prices are excluded of 10% VAT

*Exchange Rate: USD 1 = IDR 14,515

 

Indonesian customers remain indifferent about the price adjustment, claiming that the cuts are very much expected, however, offers in the import market and the distribution ground are way more competitive.  

“Trading sentiment is soft as buyers prefer to wait for further movement in the import market. The downward pressure is strong even though domestic availability is not high because of the delay in import arrivals. The near-term outlook is not optimistic,” a trader commented. 

As reported earlier, the year-end demand season failed to pick up as strongly as market players have hoped since the government announced movement restrictions to curb the spread of COVID-19 infection. End-product buyers are not in the mood to place new orders while expecting raw material prices might drop further.