Local producer continued cutting PP offers in Indonesia; PE market shows signs of stabilizing
For the eighth consecutive week, a key local producer in Indonesia cut spot PP offers on the persistently weak demand and stiff competition from the distribution market as well as import cargoes.
For the eighth consecutive week, a key local producer in Indonesia cut spot PP offers on the persistently weak demand and stiff competition from the distribution market as well as import cargoes. On the other hand, the PE sector started showing signs of stabilization given the steady demand and tightening supply outlook.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 10 Jun. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 16,100,000 |
$1,084 |
- |
- |
FD Jabodetabek |
|
mPE |
IDR 17,830,000 |
$1,201 |
- |
- |
FD Jabodetabek |
|
LL inj |
IDR 16,700,000 |
$1,125 |
- |
- |
FD Jabodetabek |
|
HD film |
IDR 16,630,000 |
$1,120 |
- |
- |
FD Jabodetabek |
|
HD yarn |
IDR 16,630,000 |
$1,120 |
- |
- |
FD Jabodetabek |
|
HD blow |
IDR 17,450,000 |
$1,175 |
- |
- |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 15,350,000 |
$1,034 |
-IDR 450,000 |
-$30 |
FD Jabodetabek |
|
PPH yarn |
IDR 14,900,000 |
$1,003 |
-IDR 300,000 |
-$20 |
FD Jabodetabek |
|
PPH inj |
IDR 14,900,000 |
$1,003 |
-IDR 300,000 |
-$20 |
FD Jabodetabek |
|
PP thin wall |
IDR 15,420,000 |
$1,038 |
-IDR 260,000 |
-$18 |
FD Jabodetabek |
|
BOPP |
IDR 15,050,000 |
$1,013 |
-IDR 450,000 |
-$30 |
FD Jabodetabek |
|
PP coating |
IDR 15,050,000 |
$1,013 |
-IDR 450,000 |
-$30 |
FD Jabodetabek |
|
PP thermo |
IDR 15,200,000 |
$1,024 |
-IDR 300,000 |
-$20 |
FD Jabodetabek |
|
PPRC |
IDR 18,060,000 |
$1,216 |
- |
- |
FD Jabodetabek |
|
PPBC |
IDR 17,150,000 |
$1,155 |
- |
- |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 14,956 |
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It is worth noting that spot homo-PP yarn offered in the distribution market has hit IDR14,450,000/ton excluding VAT ($911/ton), cash equivalent, which captured buying attention among Indonesian customers.
“But we think the market is nearing the bottom, especially for PE. Any additional decreases might be very limited,” said, a trader.
In fact, sources cited the reduced PE supply from Malaysia following the maintenance shutdown at PrefChem’s LLDPE plant while the upcoming overhaul at PT Lotte Chemical Titan Nusantara in September might help to halt the interminable downtrend in recent months.
“Besides, the demand for PE has been stable over the past several weeks, which creates a foundation for a rebound once supply curtails,” added, a market source.