Indonesian producer keeps local PP, PE offers firm amid weakening Rupiah
In the span of two weeks, the Rupiah depreciated 1.9% to 15,756 to a dollar on 29 January 2024. A weaker local currency elevated commodity traded in that currency. However, buyers are not entirely fixated on the currency fluctuations.
A major Indonesian producer opens fresh weekly offers for PP and PE to the domestic market with minor increases amid the rapid deterioration in demand as buyers here sufficiently stocked up ahead of the implementation of the import quota. The depreciation of the Rupiah against the US dollar is attributed to the price decision.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 02 Jan. 24 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 20,190,000 |
$1,281 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
mPE |
IDR 21,330,000 |
$1,354 |
+IDR 120,000 |
+$8 |
FD Jabodetabek |
|
LL inj |
IDR 20,770,000 |
$1,318 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
HD film |
IDR 19,990,000 |
$1,269 |
+IDR 270,000 |
+$17 |
FD Jabodetabek |
|
HD yarn |
IDR 19,990,000 |
$1,269 |
+IDR 270,000 |
+$17 |
FD Jabodetabek |
|
HD blow |
IDR 20,080,000 |
$1,274 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 21,620,000 |
$1,372 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
PPH yarn |
IDR 20,760,000 |
$1,318 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
PPH inj |
IDR 20,760,000 |
$1,318 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
PP thin wall |
IDR 21,290,000 |
$1,351 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
BOPP |
IDR 21,880,000 |
$1,389 |
+IDR 120,000 |
+$8 |
FD Jabodetabek |
|
PP coating |
IDR 21,880,000 |
$1,389 |
+IDR 120,000 |
+$8 |
FD Jabodetabek |
|
PP thermo |
IDR 21,250,000 |
$1,349 |
+IDR 120,000 |
+$8 |
FD Jabodetabek |
|
PPRC |
IDR 21,090,000 |
$1,339 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
PPBC |
IDR 20,920,000 |
$1,328 |
+IDR 120,000 |
+$8 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,756 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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In the span of two weeks, the Rupiah depreciated 1.9% to 15,756 to a dollar on 29 January 2024. A weaker local currency elevated commodity traded in that currency. However, buyers are not entirely fixated on the currency fluctuations. Instead, attention is drawn to the ramifications of the shipping turmoil, which is beginning to impact monomer upstream prices.
A buyer shared insights into the current outlook, noting, "The upstream costs are on the rise and it is just a matter of time before the local market catches on. Despite having sufficient stocks at the moment, attempting to procure more PP and PE cargoes from local suppliers proves challenging due to tight spot availability." The source further revealed a backlog of shipments for January PP deliveries, particularly for PP film, with potential carryovers to February shipments.