Indonesian producer reduces PP and PE offers in response to strengthening Rupiah
The price reduction comes as a relief to domestic PP and PE participants, who have been vocal about the challenges posed by stagnant end-product demand at the previous price levels.
Following a period of increased offers on its PP and PE last month, a prominent Indonesian petrochemical producer has announced a downward adjustment to its price list, effective as of last Saturday. Industry observers attribute this decision to the appreciating value of the Indonesian Rupiah against the US Dollar.
The price reduction comes as a relief to domestic PP and PE participants, who have been vocal about the challenges posed by stagnant end-product demand at the previous price levels.
A local trader commented, “Trading activities were bleak last week owing to two consecutive days of holiday. We anticipate a return of some small volume buyers to the market this week, particularly for HDPE and LLDPE film."
Meanwhile, in the distribution market, prices for HDPE and LLDPE are holding steady, despite the tightened availability of HDPE locally while local PP buyers have begun placing bids below IDR 17,000,000/ton for yarn and injection cargoes, indicating a shift in pricing sentiment.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 11 May. 24 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
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|
LL film |
IDR 20,710,000 |
$1,292 |
-IDR 220,000 |
-$14 |
FD Jabodetabek |
|
mPE |
IDR 22,030,000 |
$1,374 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
LL inj |
IDR 21,500,000 |
$1,341 |
-IDR 230,000 |
-$14 |
FD Jabodetabek |
|
HD film |
IDR 20,500,000 |
$1,278 |
-IDR 140,000 |
-$9 |
FD Jabodetabek |
|
HD yarn |
IDR 20,360,000 |
$1,270 |
-IDR 130,000 |
-$8 |
FD Jabodetabek |
|
HD blow |
IDR 20,860,000 |
$1,301 |
-IDR 220,000 |
-$14 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 22,320,000 |
$1,392 |
-IDR 250,000 |
-$16 |
FD Jabodetabek |
|
PPH yarn |
IDR 21,360,000 |
$1,332 |
-IDR 230,000 |
-$14 |
FD Jabodetabek |
|
PPH inj |
IDR 21,360,000 |
$1,332 |
-IDR 230,000 |
-$14 |
FD Jabodetabek |
|
PP thin wall |
IDR 21,920,000 |
$1,367 |
-IDR 240,000 |
-$15 |
FD Jabodetabek |
|
BOPP |
IDR 22,490,000 |
$1,403 |
-IDR 240,000 |
-$15 |
FD Jabodetabek |
|
PP coating |
IDR 22,490,000 |
$1,403 |
-IDR 240,000 |
-$15 |
FD Jabodetabek |
|
PP thermo |
IDR 21,840,000 |
$1,362 |
-IDR 240,000 |
-$15 |
FD Jabodetabek |
|
PPRC |
IDR 23,030,000 |
$1,436 |
-IDR 420,000 |
-$26 |
FD Jabodetabek |
|
PPBC |
IDR 22,230,000 |
$1,386 |
-IDR 400,000 |
-$25 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 16,035 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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