Local PP and PE offers climbed higher in Indonesia on supply concerns
As reported earlier, key transshipment ports within the region including Port Klang and Singapore are facing heavy congestion which forced many shipping lines to switch to Indian ports for transshipment to reduce the waiting time.
Trading sentiment in the local PP and PE market in Indonesia has not been at its peak for weeks, yet concerns over the near-term supply outlook seemed to carry more weight in steering the uptrend. A key local producer here opened a fresh weekly price list over the weekend mostly at higher levels, except for a minor discount on HDPE cargo.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 08 Jun. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 21,040,000 |
$1,296 |
+IDR 180,000 |
+$11 |
FD Jabodetabek |
|
mPE |
IDR 21,910,000 |
$1,349 |
+IDR 190,000 |
+$12 |
FD Jabodetabek |
|
LL inj |
IDR 21,660,000 |
$1,334 |
+IDR 180,000 |
+$11 |
FD Jabodetabek |
|
HD film |
IDR 20,500,000 |
$1,263 |
-IDR 150,000 |
-$9 |
FD Jabodetabek |
|
HD yarn |
IDR 20,340,000 |
$1,253 |
-IDR 150,000 |
-$9 |
FD Jabodetabek |
|
HD blow |
IDR 21,010,000 |
$1,294 |
+IDR 340,000 |
+$21 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 22,070,000 |
$1,359 |
+IDR 510,000 |
+$31 |
FD Jabodetabek |
|
PPH yarn |
IDR 20,670,000 |
$1,273 |
+IDR 180,000 |
+$11 |
FD Jabodetabek |
|
PPH inj |
IDR 20,670,000 |
$1,273 |
+IDR 180,000 |
+$11 |
FD Jabodetabek |
|
PP thin wall |
IDR 21,250,000 |
$1,309 |
+IDR 180,000 |
+$11 |
FD Jabodetabek |
|
BOPP |
IDR 21,170,000 |
$1,304 |
+IDR 180,000 |
+$11 |
FD Jabodetabek |
|
PP coating |
IDR 21,170,000 |
$1,304 |
+IDR 180,000 |
+$11 |
FD Jabodetabek |
|
PP thermo |
IDR 20,830,000 |
$1,283 |
+IDR 180,000 |
+$11 |
FD Jabodetabek |
|
PPRC |
IDR 22,320,000 |
$1,375 |
+IDR 30,000 |
+$2 |
FD Jabodetabek |
|
PPBC |
IDR 21,170,000 |
$1,304 |
+IDR 20,000 |
+$1 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 16,237 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
Despite the higher offers from local producers, Indonesian traders prefer to adopt more conservative pricing strategies, which widen the price gaps between producers and the distribution market.
“However, traders are no longer aggressively pushing their quantities. Instead, everyone is trying to reserve the stocks on the concerns that shipping issues coupled with heavy port congestion would cause a heavy delay in import arrival,” a market source said.
As reported earlier, key transshipment ports within the region including Port Klang and Singapore are facing heavy congestion which forced many shipping lines to switch to Indian ports for transshipment to reduce the waiting time.
Meanwhile, Indonesian traders started to control the LLDPE film sales citing the curtailed import allocation from key suppliers from Thailand and the Philippines. Sources said that besides the domestic cargoes, the Indonesian LLDPE market would depend heavily on the availability of non-dutiable Malaysian parcels, putting buyers in a rather vulnerable position.