Domestic producer continued to lift local PP and PE offers in Indonesia
The latest weekly offers reflect additional price hikes compared to the previous week, driven by favourable currency exchange rates and a resilient international market.
A major domestic producer in Indonesia has continued to increase local offers for PP and PE despite tepid buying interest. The latest weekly offers reflect additional price hikes compared to the previous week, driven by favourable currency exchange rates and a resilient international market.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 22 Jun. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 21,220,000 |
$1,289 |
+IDR 140,000 |
+$9 |
FD Jabodetabek |
|
mPE |
IDR 22,420,000 |
$1,362 |
+IDR 150,000 |
+$9 |
FD Jabodetabek |
|
LL inj |
IDR 21,840,000 |
$1,327 |
+IDR 140,000 |
+$9 |
FD Jabodetabek |
|
HD film |
IDR 20,670,000 |
$1,256 |
+IDR 130,000 |
+$8 |
FD Jabodetabek |
|
HD yarn |
IDR 20,510,000 |
$1,246 |
+IDR 140,000 |
+$9 |
FD Jabodetabek |
|
HD blow |
IDR 21,180,000 |
$1,287 |
+IDR 140,000 |
+$9 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 22,170,000 |
$1,347 |
+IDR 150,000 |
+$9 |
FD Jabodetabek |
|
PPH yarn |
IDR 20,840,000 |
$1,266 |
+IDR 300,000 |
+$18 |
FD Jabodetabek |
|
PPH inj |
IDR 20,840,000 |
$1,266 |
+IDR 300,000 |
+$18 |
FD Jabodetabek |
|
PP thin wall |
IDR 21,430,000 |
$1,302 |
+IDR 310,000 |
+$19 |
FD Jabodetabek |
|
BOPP |
IDR 21,350,000 |
$1,297 |
+IDR 310,000 |
+$19 |
FD Jabodetabek |
|
PP coating |
IDR 21,350,000 |
$1,297 |
+IDR 310,000 |
+$19 |
FD Jabodetabek |
|
PP thermo |
IDR 21,000,000 |
$1,276 |
+IDR 300,000 |
+$18 |
FD Jabodetabek |
|
PPRC |
IDR 22,670,000 |
$1,377 |
+IDR 160,000 |
+$10 |
FD Jabodetabek |
|
PPBC |
IDR 21,840,000 |
$1,327 |
+IDR 630,000 |
+$38 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 16,458 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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Market sources indicated that the recent depreciation of the Rupiah against the US dollar has contributed to the upward movement in the local market. Additionally, concerns about rising shipping costs and delays in import arrivals have exerted further upward pressure on prices.
However, these price increases have not been well received by customers. According to a trader, buyers are holding back on new purchases, anticipating lower prices in July following significant reductions in contract pricing set by the producer for the third quarter.
Furthermore, Indonesian buyers generally expect local supply to improve, supported by the restart of Chandra Asri’s petrochemical complex after a major maintenance shutdown.
In contrast, spot PP and PE offers in the distribution market have shown a stable to softer trend, widening the price gap with the producer’s official price lists. Market observers believe that the aggressive price hikes by the producer may prove to be unsustainable in the current market environment.