Accelerated downtrend in Indonesia's local PP and PE market amid bearish short-term outlook
This move was anticipated by market participants and aligns with the downward trend set by the producer for the third quarter term contract settlements.
On the first trading day of July, a major local producer in Indonesia announced significant weekly reductions in spot prices for polypropylene (PP) and polyethylene (PE). This move was anticipated by market participants and aligns with the downward trend set by the producer for the third quarter term contract settlements.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 29 Jun. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 20,610,000 |
$1,260 |
-IDR 610,000 |
-$37 |
FD Jabodetabek |
|
mPE |
IDR 22,470,000 |
$1,374 |
+IDR 50,000 |
+$3 |
FD Jabodetabek |
|
LL inj |
IDR 21,560,000 |
$1,318 |
-IDR 280,000 |
-$17 |
FD Jabodetabek |
|
HD film |
IDR 20,230,000 |
$1,237 |
-IDR 440,000 |
-$27 |
FD Jabodetabek |
|
HD yarn |
IDR 20,230,000 |
$1,237 |
-IDR 280,000 |
-$17 |
FD Jabodetabek |
|
HD blow |
IDR 20,740,000 |
$1,268 |
-IDR 440,000 |
-$27 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 20,740,000 |
$1,268 |
-IDR 1,430,000 |
-$87 |
FD Jabodetabek |
|
PPH yarn |
IDR 19,730,000 |
$1,206 |
-IDR 1,110,000 |
-$68 |
FD Jabodetabek |
|
PPH inj |
IDR 19,730,000 |
$1,206 |
-IDR 1,110,000 |
-$68 |
FD Jabodetabek |
|
PP thin wall |
IDR 20,240,000 |
$1,237 |
-IDR 1,190,000 |
-$73 |
FD Jabodetabek |
|
BOPP |
IDR 20,240,000 |
$1,237 |
-IDR 1,110,000 |
-$68 |
FD Jabodetabek |
|
PP coating |
IDR 20,240,000 |
$1,237 |
-IDR 1,110,000 |
-$68 |
FD Jabodetabek |
|
PP thermo |
IDR 20,230,000 |
$1,237 |
-IDR 770,000 |
-$47 |
FD Jabodetabek |
|
PPRC |
IDR 22,720,000 |
$1,389 |
+IDR 50,000 |
+$3 |
FD Jabodetabek |
|
PPBC |
IDR 21,230,000 |
$1,298 |
-IDR 610,000 |
-$37 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 16,357 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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Buyers have shown reluctance to commit to new purchases immediately, opting instead to evaluate the near-term market outlook. Compared to localized Malaysian high-density polyethylene (HDPE) and linear low-density polyethylene (LLDPE) film cargoes, the latest offers from the Indonesian producer are perceived as less attractive by market sources.
“On the other hand, the shorter lead time advantage might still attract customers,” a distributor commented.
Ongoing port congestion and shipping delays have significantly impacted import arrivals, even for nearby shipments. Consequently, many converters are compelled to source prompt local cargoes at higher price levels to bridge the supply gap.
Written by: Henny Sunarto
Edited by: Rochelle Nguyen