Indonesian PP, PE market extended the downswing ahead of the Ramadan holiday
At the start of the week, a prominent domestic producer in Indonesia slashed the PP and PE price list by as much as $30/ton compared to late last week amid increasing downward pressure from more attractive cargoes in the distribution market.
At the start of the week, a prominent domestic producer in Indonesia slashed the PP and PE price list by as much as $30/ton compared to late last week amid increasing downward pressure from more attractive cargoes in the distribution market. Demand conditions in Indonesia have been steadily diminishing over the past couple of weeks and are expected to weaken further in the days ahead.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List 25 March 2024 |
USD Equivalent |
Changes |
USD Equivalent |
Term |
|
Combined and Reported by CommoPlast |
|||||
|
LL film |
IDR 20,370,000 |
$1,289 |
-IDR 470,000 |
-$30 |
FD Jabodetabek |
|
mPE C6 |
IDR 20,850,000 |
$1,320 |
-IDR 470,000 |
-$30 |
FD Jabodetabek |
|
LL inj |
IDR 20,960,000 |
$1,327 |
-IDR 470,000 |
-$30 |
FD Jabodetabek |
|
HD film |
IDR 19,990,000 |
$1,265 |
-IDR 470,000 |
-$30 |
FD Jabodetabek |
|
HD yarn |
IDR 19,990,000 |
$1,265 |
-IDR 470,000 |
-$30 |
FD Jabodetabek |
|
HD Blow |
IDR 20,180,000 |
$1,277 |
-IDR 80,000 |
-$5 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 21,630,000 |
$1,369 |
-IDR 310,000 |
-$20 |
FD Jabodetabek |
|
PPH yarn |
IDR 20,740,000 |
$1,313 |
-IDR 310,000 |
-$20 |
FD Jabodetabek |
|
PPH inj |
IDR 20,740,000 |
$1,313 |
-IDR 310,000 |
-$20 |
FD Jabodetabek |
|
PPH thinwall |
IDR 21,300,000 |
$1,348 |
-IDR 310,000 |
-$20 |
FD Jabodetabek |
|
BOPP |
IDR 21,860,000 |
$1,384 |
-IDR 310,000 |
-$20 |
FD Jabodetabek |
|
PP coating |
IDR 21,860,000 |
$1,384 |
-IDR 310,000 |
-$20 |
FD Jabodetabek |
|
PP thermo |
IDR 21,230,000 |
$1,344 |
-IDR 310,000 |
-$20 |
FD Jabodetabek |
|
PPRC |
IDR 22,160,000 |
$1,403 |
-IDR 310,000 |
-$20 |
FD Jabodetabek |
|
PPBC |
IDR 21,530,000 |
$1,363 |
-IDR 310,000 |
-$20 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,800 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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As reported earlier, local traders in Indonesia stepped up the effort to stimulate transactions by cutting localised imported cargoes steeply in the previous week. Data from CommoPlast showed that spot HDPE film (originating from Malaysia) is available in the distribution market at IDR3,000,000/ton below the producer’s price list.
“We expect traders to further reduce their offers this week. April is a short trading month, everyone wants to secure as many businesses as possible before the market takes off for the long holiday next week,” a buyer commented.
Currently, Indonesian market players prefer to monitor the price further rather than engage in new deals as on-hand stocks are at a 45 – 90-day typical period depletion. The ample stocks were from the panic buying situation earlier due to the import quota mandate which was then revoked by the trade ministry on 29 February 2024.