Indonesian PP, PE market galloped higher on cost-push; demand remained timid.
Sources said that while the local PE offers are carrying a large premium over import cargoes, the recent rally in spot homo-PP prices led to a much smaller gap with the US dollar-dominated parcels.
Indonesian customers once again received fresh hikes on both PP and PE cargoes from a key local producer over the weekend, primarily due to strong cost outlook while purchasing activities in this market have been softening for several weeks in a row.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 19 Aug. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 17,930,000 |
$1,171 |
+IDR 270,000 |
+$18 |
FD Jabodetabek |
|
mPE |
IDR 19,430,000 |
$1,269 |
+IDR 140,000 |
+$9 |
FD Jabodetabek |
|
LL inj |
IDR 18,530,000 |
$1,210 |
+IDR 270,000 |
+$18 |
FD Jabodetabek |
|
HD film |
IDR 18,200,000 |
$1,189 |
+IDR 130,000 |
+$8 |
FD Jabodetabek |
|
HD yarn |
IDR 18,200,000 |
$1,189 |
+IDR 130,000 |
+$8 |
FD Jabodetabek |
|
HD blow |
IDR 18,070,000 |
$1,180 |
- |
- |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 17,470,000 |
$1,141 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
PPH yarn |
IDR 16,470,000 |
$1,076 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
PPH inj |
IDR 16,470,000 |
$1,076 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
PP thin wall |
IDR 17,010,000 |
$1,111 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
BOPP |
IDR 17,170,000 |
$1,122 |
+IDR 120,000 |
+$8 |
FD Jabodetabek |
|
PP coating |
IDR 17,170,000 |
$1,122 |
+IDR 120,000 |
+$8 |
FD Jabodetabek |
|
PP thermo |
IDR 16,780,000 |
$1,096 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
PPRC |
IDR 18,700,000 |
$1,222 |
+IDR 120,000 |
+$8 |
FD Jabodetabek |
|
PPBC |
IDR 17,480,000 |
$1,142 |
+IDR 380,000 |
+$25 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,308 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
Sources said that while the local PE offers are carrying a large premium over import cargoes, the recent rally in spot homo-PP prices led to a much smaller gap with the US dollar-dominated parcels.
“Still, sales have been very slow. Only a few small-scale buyers are willing to make hand-to-mouth purchases to cover their immediate needs. Everyone is keeping an eye out for fresh supply from a Malaysian plant,” said, an Indonesian trader.
As reported earlier, Malaysia’s PrefChem has been able to maintain operating rates at both HDPE and LLDPE plants steady at 70-80% while one of the PP lines is currently producing homo-PP yarn. On-spec parcels emerged in the Southeast Asian market in recent days, spurring expectations of easing the supply tightness.