Local producer rollover PP, PE offers in Indonesia, buying interest remained weak.
Trading sentiment is rather heavy at the start of the week. Buyers continued waiting on the sidelines citing the ongoing weakening trend in the international market.
A key Indonesian producer reportedly rollover spot PP and PE offers on the first trading day of the week, shrugging off the rapid depreciation of the Rupiah against the US dollar, which usually pushes local prices higher.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 23 Oct. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 18,700,000 |
$1,180 |
- |
- |
FD Jabodetabek |
|
mPE |
IDR 20,380,000 |
$1,286 |
- |
- |
FD Jabodetabek |
|
LL inj |
IDR 19,300,000 |
$1,218 |
- |
- |
FD Jabodetabek |
|
HD film |
IDR 19,440,000 |
$1,227 |
- |
- |
FD Jabodetabek |
|
HD yarn |
IDR 19,440,000 |
$1,227 |
- |
- |
FD Jabodetabek |
|
HD blow |
IDR 19,780,000 |
$1,248 |
- |
- |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 18,230,000 |
$1,150 |
- |
- |
FD Jabodetabek |
|
PPH yarn |
IDR 17,680,000 |
$1,116 |
- |
- |
FD Jabodetabek |
|
PPH inj |
IDR 17,680,000 |
$1,116 |
- |
- |
FD Jabodetabek |
|
PP thin wall |
IDR 18,230,000 |
$1,150 |
- |
- |
FD Jabodetabek |
|
BOPP |
IDR 18,000,000 |
$1,136 |
- |
- |
FD Jabodetabek |
|
PP coating |
IDR 18,000,000 |
$1,136 |
- |
- |
FD Jabodetabek |
|
PP thermo |
IDR 17,840,000 |
$1,126 |
- |
- |
FD Jabodetabek |
|
PPRC |
IDR 19,640,000 |
$1,239 |
- |
- |
FD Jabodetabek |
|
PPBC |
IDR 19,950,000 |
$1,259 |
- |
- |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,849 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
Trading sentiment is rather heavy at the start of the week. Buyers continued waiting on the sidelines citing the ongoing weakening trend in the international market. The general expectation at the moment is that the domestic market might soon follow suit.
“Even our own customers refused to place new PO for finished goods at the current prices. Everyone is waiting for larger discounts,” said, an HDPE bag maker.
In the distribution market, locally held Malaysian LLDPE film is offered in the range of IDR16,400,000 – 16,500,000/ton excluding VAT, which are way below the producer’s official price list. Another PE packaging converter added, “Although these cargoes are primarily used for mixing, our customers do not accept any higher price levels. The market is very challenging; hence, we would only make new purchases if our customers accepted the raw material costs.”