Indonesian producer lifted local PP, PE offers amid import quota concerns
The heightened fear among market participants stokes expectations that buyers might have to accept the latest price increment.
In response to panic buying in the distribution market triggered by concerns over the import quotas, a major Indonesian producer lifted spot PP and PE offers sharply. The move comes amid growing uncertainties surrounding the supply outlook in 2024 as the Import Restrictions regulations are set to come into effect on 10 March 2024.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 16 Dec. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 18,630,000 |
$1,202 |
+IDR 250,000 |
+$16 |
FD Jabodetabek |
|
mPE |
IDR 20,290,000 |
$1,309 |
+IDR 260,000 |
+$17 |
FD Jabodetabek |
|
LL inj |
IDR 19,220,000 |
$1,240 |
+IDR 250,000 |
+$16 |
FD Jabodetabek |
|
HD film |
IDR 19,370,000 |
$1,250 |
+IDR 260,000 |
+$17 |
FD Jabodetabek |
|
HD yarn |
IDR 19,370,000 |
$1,250 |
+IDR 260,000 |
+$17 |
FD Jabodetabek |
|
HD blow |
IDR 19,690,000 |
$1,271 |
+IDR 250,000 |
+$16 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 17,720,000 |
$1,143 |
+IDR 700,000 |
+$45 |
FD Jabodetabek |
|
PPH yarn |
IDR 17,330,000 |
$1,118 |
+IDR 390,000 |
+$25 |
FD Jabodetabek |
|
PPH inj |
IDR 17,330,000 |
$1,118 |
+IDR 390,000 |
+$25 |
FD Jabodetabek |
|
PP thin wall |
IDR 17,860,000 |
$1,152 |
+IDR 390,000 |
+$25 |
FD Jabodetabek |
|
BOPP |
IDR 17,970,000 |
$1,160 |
+IDR 860,000 |
+$55 |
FD Jabodetabek |
|
PP coating |
IDR 17,970,000 |
$1,160 |
+IDR 860,000 |
+$55 |
FD Jabodetabek |
|
PP thermo |
IDR 17,820,000 |
$1,150 |
+IDR 400,000 |
+$26 |
FD Jabodetabek |
|
PPRC |
IDR 19,300,000 |
$1,245 |
+IDR 550,000 |
+$35 |
FD Jabodetabek |
|
PPBC |
IDR 19,050,000 |
$1,229 |
+IDR 560,000 |
+$36 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,497 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
According to market sources, the steeper hikes in PP prices derive from the tighter availability stemming from the recent technical issue at the producer’s plant. Nevertheless, the upward momentum was already warranted by the tightening supply outlook in the coming months. The heightened fear among market participants stokes expectations that buyers might have to accept the latest price increment.
As reported earlier, the Indonesian government signed a directive on 11 December 2023 announcing the implementation of import restrictions within 90 days. Importers of PP and PE are required to submit applications for import quotas based on their purchase history and production needs.
“However, we expect purchasing activities to slow down substantially. Many buyers have started leaving their desks for holiday and the current prices are too risky,” a market source added.