Indonesian producer continued lifting PP, PE offers; demand remained sluggish.
As reported earlier, the distribution PE market in Indonesia has been moving in an opposite direction compared to the official price list from the local producer or the regional market.
Despite the heightening competition from the distribution market and the persistently weak demand conditions, a major Indonesian producer continued to lift spot PP and PE offers to local buyers claiming the strong cost pressure.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 09 Sept. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 18,110,000 |
$1,180 |
+IDR 170,000 |
+$11 |
FD Jabodetabek |
|
mPE |
IDR 19,450,000 |
$1,267 |
+IDR 20,000 |
+$1 |
FD Jabodetabek |
|
LL inj |
IDR 18,710,000 |
$1,219 |
+IDR 170,000 |
+$11 |
FD Jabodetabek |
|
HD film |
IDR 18,370,000 |
$1,197 |
+IDR 10,000 |
+$1 |
FD Jabodetabek |
|
HD yarn |
IDR 18,370,000 |
$1,197 |
+IDR 10,000 |
+$1 |
FD Jabodetabek |
|
HD blow |
IDR 18,560,000 |
$1,209 |
+IDR 170,000 |
+$11 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 17,960,000 |
$1,170 |
+IDR 320,000 |
+$21 |
FD Jabodetabek |
|
PPH yarn |
IDR 16,960,000 |
$1,105 |
+IDR 320,000 |
+$21 |
FD Jabodetabek |
|
PPH inj |
IDR 16,960,000 |
$1,105 |
+IDR 320,000 |
+$21 |
FD Jabodetabek |
|
PP thin wall |
IDR 17,500,000 |
$1,140 |
+IDR 330,000 |
+$22 |
FD Jabodetabek |
|
BOPP |
IDR 17,650,000 |
$1,150 |
+IDR 320,000 |
+$21 |
FD Jabodetabek |
|
PP coating |
IDR 17,650,000 |
$1,150 |
+IDR 320,000 |
+$21 |
FD Jabodetabek |
|
PP thermo |
IDR 17,270,000 |
$1,125 |
+IDR 330,000 |
+$22 |
FD Jabodetabek |
|
PPRC |
IDR 18,880,000 |
$1,230 |
+IDR 10,000 |
+$1 |
FD Jabodetabek |
|
PPBC |
IDR 18,310,000 |
$1,193 |
+IDR 240,000 |
+$16 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,347 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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As reported earlier, the distribution PE market in Indonesia has been moving in an opposite direction compared to the official price list from the local producer or the regional market. Last week, Indonesian traders slashed locally held Malaysian HDPE and LLDPE film by IDR200,000 – 500,000/ton for October delivery. The heavy influx of previously purchased cargoes and fear of a cloudy demand outlook is blamed for the development.
“The market is currently driven by cost factors. The demand in Indonesia is not strong enough to support any hike at the moment,” said, a market source.
It has been several weeks converters in the PE packaging sector complained of a constant decline in new orders. In certain areas, these converters even re-sell their on-hand raw materials stocks, creating more competition in the already weak market.