Nov 01, 2024 8:32 p.m.

Local maker slashed spot PP, PE offers in Indonesia on weak demand; exchange rate

Indonesian customers have been expecting some downward adjustments from the producer, however, the aggressive pricing decisions were unaccounted for.

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Over the weekend, a major Indonesian producer reportedly announced fresh PP and PE offers to domestic buyers with sharp reductions from the previous price list. The nosedive in the new offers is partly attributed to the appreciated Rupiah against the US dollar with weak demand in the background. 

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

Material

Price List as of 01 Apr. 23

USD Equivalent

W.O.W Changes

USD Equivalent

Term

Combined and reported by CommoPlast

LL film

IDR 17,790,000

$1,189

-IDR 560,000

-$37

FD Jabodetabek

mPE

IDR 19,690,000

$1,316

-IDR 200,000

-$13

FD Jabodetabek

LL inj

IDR 18,390,000

$1,229

-IDR 650,000

-$43

FD Jabodetabek

HD film

IDR 17,410,000

$1,163

-IDR 1,010,000

-$67

FD Jabodetabek

HD yarn

IDR 17,410,000

$1,163

-IDR 1,010,000

-$67

FD Jabodetabek

HD blow

IDR 17,790,000

$1,189

-IDR 870,000

-$58

FD Jabodetabek

IPP (PP Film)

IDR 17,860,000

$1,193

-IDR 1,150,000

-$77

FD Jabodetabek

PPH yarn

IDR 17,250,000

$1,153

-IDR 980,000

-$65

FD Jabodetabek

PPH inj

IDR 17,250,000

$1,153

-IDR 980,000

-$65

FD Jabodetabek

PP thin wall

IDR 17,790,000

$1,189

-IDR 1,220,000

-$82

FD Jabodetabek

BOPP

IDR 17,410,000

$1,163

-IDR 1,130,000

-$76

FD Jabodetabek

PP coating

IDR 17,410,000

$1,163

-IDR 1,130,000

-$76

FD Jabodetabek

PP thermo

IDR 17,560,000

$1,173

-IDR 1,210,000

-$81

FD Jabodetabek

PPRC

IDR 19,150,000

$1,280

-IDR 1,290,000

-$86

FD Jabodetabek

PPBC

IDR 18,850,000

$1,260

-IDR 620,000

-$41

FD Jabodetabek

*All prices are excluded of 11% VAT

*Exchange Rate: USD 1 = IDR 14,965

*Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000

 

Indonesian customers have been expecting some downward adjustments from the producer, however, the aggressive pricing decisions were unaccounted for. Still, market participants do not believe that the market is anywhere near the bottom citing the approaching Eid Fitr holiday. 

“The finished goods market is weak in both PP and PE sectors. We do not expect strong pre-holiday replenishment activities unless suppliers agree to another round of drastic reductions,” added, a trader.

 

Throughout the early trading hours on Monday, 3 April 2023, there have been discussions on whether the producer would increase the offers after the crude oil prices rose 5%. Apparently, buyers here show no sign of panic buying while pointing to the absence of real demand, which could anchor any efforts in lifting PP and PE offers.  

Country

Indonesia