Local producer cuts PP offers in Indonesia while keeping PE unchanged.
In the meantime, the distribution market is more responsive to the market development with traders actively offering discounts to entice buying interest.
On the first trading day of the week, a key Indonesian producer opens fresh PP offers to the local market with reductions from the previous price announcement despite the rapid depreciation of the Rupiah. Weak demand coupled with the downward pressure from the import market is attributed to the softer price decisions.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 30 Oct. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 18,700,000 |
$1,176 |
- |
- |
FD Jabodetabek |
|
mPE |
IDR 20,380,000 |
$1,282 |
- |
- |
FD Jabodetabek |
|
LL inj |
IDR 19,300,000 |
$1,214 |
- |
- |
FD Jabodetabek |
|
HD film |
IDR 19,440,000 |
$1,222 |
- |
- |
FD Jabodetabek |
|
HD yarn |
IDR 19,440,000 |
$1,222 |
- |
- |
FD Jabodetabek |
|
HD blow |
IDR 19,780,000 |
$1,244 |
- |
- |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 18,090,000 |
$1,138 |
-IDR 140,000 |
-$9 |
FD Jabodetabek |
|
PPH yarn |
IDR 17,380,000 |
$1,093 |
-IDR 300,000 |
-$19 |
FD Jabodetabek |
|
PPH inj |
IDR 17,380,000 |
$1,093 |
-IDR 300,000 |
-$19 |
FD Jabodetabek |
|
PP thin wall |
IDR 17,930,000 |
$1,127 |
-IDR 300,000 |
-$19 |
FD Jabodetabek |
|
BOPP |
IDR 17,860,000 |
$1,123 |
-IDR 140,000 |
-$9 |
FD Jabodetabek |
|
PP coating |
IDR 17,860,000 |
$1,123 |
-IDR 140,000 |
-$9 |
FD Jabodetabek |
|
PP thermo |
IDR 17,540,000 |
$1,103 |
-IDR 300,000 |
-$19 |
FD Jabodetabek |
|
PPRC |
IDR 19,510,000 |
$1,227 |
-IDR 130,000 |
-$8 |
FD Jabodetabek |
|
PPBC |
IDR 19,430,000 |
$1,222 |
-IDR 520,000 |
-$33 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,903 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
There has not been any major improvement in trading sentiment in Indonesia and the sluggish finished goods market discourages converters from replenishing more raw material stocks.
In the meantime, the distribution market is more responsive to the market development with traders actively offering discounts to entice buying interest. In fact, at the time of this report, traders are offering locally held imported homo-PP yarn for end-November delivery at IDR16,250,000/ton excluding VAT ($1020/ton), cash equivalent.
A market source said, “The exchange rate issues have brought back some buyers from the import market; however, the overall transactions are disappointing. Everyone is being cautious.”