Feb 06, 2023 7:08 a.m.

Indonesian producer surprisingly softened stance on spot PP, PE offers amid rising import market

Indonesian producer surprisingly softened stance on spot PP, PE offers amid rising import market

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Indonesian market participants earlier this week reported having received fresh weekly PP and PE offers from a key domestic producer at stable to softer levels from the previous price announcement despite the rising import offers from international suppliers.

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

Material

Price List as of21 Jan. 23

USD Equivalent

W.O.W Changes

USD Equivalent

Term

Combined and reported by CommoPlast

LL film

IDR 18,200,000

$1,207

-

-

FD Jabodetabek

mPE

IDR 19,130,000

$1,268

-

-

FD Jabodetabek

LL inj

IDR 18,900,000

$1,253

-

-

FD Jabodetabek

HD film

IDR 18,390,000

$1,219

-IDR 510,000

-$34

FD Jabodetabek

HD yarn

IDR 18,390,000

$1,219

-IDR 510,000

-$34

FD Jabodetabek

HD blow

IDR 19,080,000

$1,265

-IDR 520,000

-$34

FD Jabodetabek

IPP (PP Film)

IDR 19,520,000

$1,294

-

-

FD Jabodetabek

PPH yarn

IDR 18,740,000

$1,242

-

-

FD Jabodetabek

PPH inj

IDR 18,740,000

$1,242

-

-

FD Jabodetabek

PP thin wall

IDR 19,370,000

$1,284

-

-

FD Jabodetabek

BOPP

IDR 19,210,000

$1,274

-

-

FD Jabodetabek

PP coating

IDR 19,210,000

$1,274

-

-

FD Jabodetabek

PP thermo

IDR 19,290,000

$1,279

-

-

FD Jabodetabek

PPRC

IDR 20,620,000

$1,367

-

-

FD Jabodetabek

PPBC

IDR 19,990,000

$1,325

+IDR 390,000

+$26

FD Jabodetabek

*All prices are excluded of 10% VAT

*Exchange Rate: USD 1 = IDR 15,084

 

While the latest price list was criticized for causing disruption in the distribution market, players speculated that the producer was attempting to lure customers back to the local ground as the previously aggressive price hikes push many buyers to the import market. 

“Besides, sellers are waiting for further development once China returns from the weeklong Lunar New Year holidays to determine the pricing trend. The latest adjustment might be temporary,” a market source added.

 

In the distribution market, traders are complaining of a drastic drop in purchasing activities and a couple of trading houses started to offer minor discounts on both PP and PE parcels to encourage demand.