Indonesia: Local PP offers rise, PE demand slows, and import homo-PP softens
The woven bag sector – the primary buyer of homo-PP yarn, has been struggling to pass on the rising raw material costs to their finished goods selling prices.
Despite softer import offers from international suppliers and rapidly deteriorating demand conditions, a key Indonesian producer continued to lift spot PP offers sharply to local buyers, claiming the lack of availability.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 13 Jan. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 19,540,000 |
$1,257 |
+IDR 70,000 |
+$5 |
FD Jabodetabek |
|
mPE |
IDR 21,210,000 |
$1,365 |
+IDR 70,000 |
+$5 |
FD Jabodetabek |
|
LL inj |
IDR 20,120,000 |
$1,294 |
+IDR 70,000 |
+$5 |
FD Jabodetabek |
|
HD film |
IDR 19,720,000 |
$1,269 |
- |
- |
FD Jabodetabek |
|
HD yarn |
IDR 19,720,000 |
$1,269 |
- |
- |
FD Jabodetabek |
|
HD blow |
IDR 19,970,000 |
$1,285 |
- |
- |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 21,270,000 |
$1,368 |
+IDR 310,000 |
+$20 |
FD Jabodetabek |
|
PPH yarn |
IDR 21,040,000 |
$1,354 |
+IDR 460,000 |
+$30 |
FD Jabodetabek |
|
PPH inj |
IDR 21,040,000 |
$1,354 |
+IDR 460,000 |
+$30 |
FD Jabodetabek |
|
PP thin wall |
IDR 21,570,000 |
$1,388 |
+IDR 470,000 |
+$30 |
FD Jabodetabek |
|
BOPP |
IDR 21,520,000 |
$1,385 |
+IDR 310,000 |
+$20 |
FD Jabodetabek |
|
PP coating |
IDR 21,520,000 |
$1,385 |
+IDR 310,000 |
+$20 |
FD Jabodetabek |
|
PP thermo |
IDR 21,520,000 |
$1,385 |
+IDR 460,000 |
+$30 |
FD Jabodetabek |
|
PPRC |
IDR 21,050,000 |
$1,354 |
+IDR 70,000 |
+$5 |
FD Jabodetabek |
|
PPBC |
IDR 20,880,000 |
$1,343 |
+IDR 540,000 |
+$35 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,543 |
|||||
Market participants are no longer interested, or to be more precise, afford the current spot homo-PP offers from the producers. The woven bag sector – the primary buyer of homo-PP yarn, has been struggling to pass on the rising raw material costs to their finished goods selling prices.
A buyer added, “These offers are for show. Even end-product buyers are unable to accept these prices. We managed to secure comfortable stocks and temporarily suspended all new replenishment.”
In the import market, non-dutiable Vietnamese homo-PP yarn for January loading is now available in the range of $1060-1070/ton CIF Indonesia, down from $1090-1100/ton earlier last week.
Meanwhile, the heightened demand for PE observed in December has now subsided. Converters prefer to focus primarily on selling end-products rather than accumulating new raw material stock, which contributes to a slowdown in trading activities for the week. This trend is reflected in the local distribution prices, which have decreased by IDR 300,000/ton compared to the previous week.