Indonesian producer surprises local market with mid-week price hikes on PE
For many months, local PE cargoes in Indonesia have been highly attractive against imported materials, which discourages buyers from seeking overseas materials even though the exchange rates are more favourable.
Following weeks of maintaining a soft stance on spot PE cargoes, a key Indonesian producer unexpectedly up-adjusts the price list by mid of the week – a movement market participants attribute to the reduced inventory pressure.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 02 Feb. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 18,690,000 |
$1,250 |
+IDR 490,000 |
+$33 |
FD Jabodetabek |
|
mPE |
IDR 19,630,000 |
$1,313 |
+IDR 500,000 |
+$33 |
FD Jabodetabek |
|
LL inj |
IDR 19,440,000 |
$1,300 |
+IDR 540,000 |
+$36 |
FD Jabodetabek |
|
HD film |
IDR 18,690,000 |
$1,250 |
+IDR 300,000 |
+$20 |
FD Jabodetabek |
|
HD yarn |
IDR 18,690,000 |
$1,250 |
+IDR 300,000 |
+$20 |
FD Jabodetabek |
|
HD blow |
IDR 19,450,000 |
$1,300 |
+IDR 300,000 |
+$20 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 20,430,000 |
$1,366 |
- |
- |
FD Jabodetabek |
|
PPH yarn |
IDR 19,650,000 |
$1,314 |
- |
- |
FD Jabodetabek |
|
PPH inj |
IDR 19,650,000 |
$1,314 |
- |
- |
FD Jabodetabek |
|
PP thin wall |
IDR 20,270,000 |
$1,355 |
- |
- |
FD Jabodetabek |
|
BOPP |
IDR 20,120,000 |
$1,345 |
- |
- |
FD Jabodetabek |
|
PP coating |
IDR 20,120,000 |
$1,345 |
- |
- |
FD Jabodetabek |
|
PP thermo |
IDR 20,190,000 |
$1,350 |
- |
- |
FD Jabodetabek |
|
PPRC |
IDR 20,920,000 |
$1,399 |
- |
- |
FD Jabodetabek |
|
PPBC |
IDR 20,440,000 |
$1,367 |
- |
- |
FD Jabodetabek |
|
*All prices are excluded of 10% VAT *Exchange Rate: USD 1 = IDR 14,956 |
|||||
For many months, local PE cargoes in Indonesia have been highly attractive against imported materials, which discourages buyers from seeking overseas materials even though the exchange rates are more favourable.
“With the firming import market, it should not be a surprise that local producers start to increase the prices. Besides, the demand outlook is bullish,” a market source commented. The buyer cited the preparation for the upcoming Ramadan season and the lifting of COVID-19 restrictions in China as support for the optimism.
Earlier this week, the maker lifted contract alpha for PP cargoes by 30% and there have been speculations that a similar pricing strategy might be applied to contract PE cargoes in the coming days.