Mar 29, 2024 4:37 a.m.

Local PP and PE offers continue to hike despite the appreciated Rupiah in Indonesia

Local PP and PE offers continue to hike despite the appreciated Rupiah in Indonesia

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Strong bullish sentiments brewing amongst suppliers have sparked a massive jump in spot PP and PE prices in the domestic Indonesia market this week despite the rapid appreciation of the Rupiah against the US dollar.

The latest price list from a key local producer and changes compared to last week are shown in the following table: 

Material

Price List as of 16 Jan. 23

USD Equivalent

W.O.W Changes

USD Equivalent

Term

Combined and reported by CommoPlast

LL film

IDR 18,200,000

$1,205

+IDR 250,000

+$17

FD Jabodetabek

mPE

IDR 19,130,000

$1,267

-IDR 80,000

-$5

FD Jabodetabek

LL inj

IDR 18,900,000

$1,251

+IDR 240,000

+$16

FD Jabodetabek

HD film

IDR 18,900,000

$1,251

+IDR 240,000

+$16

FD Jabodetabek

HD yarn

IDR 18,900,000

$1,251

+IDR 240,000

+$16

FD Jabodetabek

HD blow

IDR 19,600,000

$1,298

+IDR 160,000

+$11

FD Jabodetabek

IPP (PP Film)

IDR 19,520,000

$1,293

+IDR 550,000

+$36

FD Jabodetabek

PPH yarn

IDR 18,740,000

$1,241

+IDR 240,000

+$16

FD Jabodetabek

PPH inj

IDR 18,740,000

$1,241

+IDR 240,000

+$16

FD Jabodetabek

PP thin wall

IDR 19,370,000

$1,283

+IDR 90,000

+$6

FD Jabodetabek

BOPP

IDR 19,210,000

$1,272

+IDR 400,000

+$26

FD Jabodetabek

PP coating

IDR 19,210,000

$1,272

+IDR 400,000

+$26

FD Jabodetabek

PP thermo

IDR 19,290,000

$1,277

+IDR 240,000

+$16

FD Jabodetabek

PPRC

IDR 20,620,000

$1,365

+IDR 400,000

+$26

FD Jabodetabek

PPBC

IDR 19,600,000

$1,298

+IDR 550,000

+$36

FD Jabodetabek

*All prices are excluded from 10% VAT

*Exchange Rate: USD 1 = IDR 15,102

 

In a span of a week, the Rupiah appreciated nearly 3.2% against the US dollar, according to data from Oanda, on expectations that the Federal Reserve would be less aggressive in the next interest rate hikes, now that inflation in the US is under control.

On the other hand, suppliers are optimistic as they continue to count on the tightening global PP and PE supply outlook as Asian and Middle Eastern plants enter maintenance season. 

It is becoming increasingly difficult for the end-product market as the current demand does not support the inflated raw material pricing. A manufacturer in the packaging sector told CommoPlast, “Some of our customers decided to cancel placing new PO because they are unwilling to accept current prices. We have no plan to chase after the uptrend to protect our cashflow. There are too much of uncertainties, hence, we prefer to do back-to-back businesses.”