Indonesian producer surprised the market with increases on spot PP, PE offers
Indonesian players were taken aback by the increase, given that the price in the distribution market had begun to decline the previous week.
As the Indonesian government officially scrapped the import quota mandate on homo-PP, LLDPE and HDPE, market participants widely anticipated a wave of downward price adjustments from local suppliers. To the market's surprise, a major domestic producer here decided to maintain a firm stance on spot cargoes, reflecting in fresh increases in the latest price list.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 12 Mar. 24 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 21,460,000 |
$1,384 |
+IDR 230,000 |
+$15 |
FD Jabodetabek |
|
mPE |
IDR 21,940,000 |
$1,415 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
LL inj |
IDR 22,050,000 |
$1,422 |
+IDR 240,000 |
+$15 |
FD Jabodetabek |
|
HD film |
IDR 21,080,000 |
$1,360 |
+IDR 230,000 |
+$15 |
FD Jabodetabek |
|
HD yarn |
IDR 21,080,000 |
$1,360 |
+IDR 230,000 |
+$15 |
FD Jabodetabek |
|
HD blow |
IDR 20,880,000 |
$1,347 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 21,940,000 |
$1,415 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
PPH yarn |
IDR 21,050,000 |
$1,358 |
+IDR 70,000 |
+$5 |
FD Jabodetabek |
|
PPH inj |
IDR 21,050,000 |
$1,358 |
+IDR 70,000 |
+$5 |
FD Jabodetabek |
|
PP thin wall |
IDR 21,610,000 |
$1,394 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
BOPP |
IDR 22,170,000 |
$1,430 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
PP coating |
IDR 22,170,000 |
$1,430 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
PP thermo |
IDR 21,540,000 |
$1,389 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
PPRC |
IDR 22,020,000 |
$1,420 |
+IDR 710,000 |
+$46 |
FD Jabodetabek |
|
PPBC |
IDR 21,840,000 |
$1,409 |
+IDR 710,000 |
+$46 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,503 |
|||||
Indonesian players were taken aback by the increase, given that the price in the distribution market had begun to decline the previous week. A player mentioned that prices were unchanged from the previous week in the distribution market. The producer's action may have something to do with their planned 30-day maintenance closure for both the PE and PP plants in Q2.
In the meantime, since the PP and PE buyers are holding comfortable stock on-hand, they are opting to take a wait-and-see approach in the interim. "Last week we received a few offers from the distribution market. We anticipate traders that were getting ready on the suspension of the import quota will have plenty of inventory on-hand and as pressure builds on them, we're expecting additional discounts to show up,” said a PE buyer.