Indonesian major cut local offers twice in three days, pushing buyers further to the sidelines
In the span of three days, a major local producer in Indonesia has down-adjusted spot PP and PE offers twice in an attempt to stimulate buying interest while supply is recovering from the recent tightness.
In the span of three days, a major local producer in Indonesia has down-adjusted spot PP and PE offers twice in an attempt to stimulate buying interest while supply is recovering from the recent tightness. This is the third consecutive weekly price cut since the start of July, which severely eroded market confidence and discouraged replenishment activities.
The producer’s latest price list and changes compared to the price list announced on 06 July are shown in the following table:
|
Material |
Price List as of 15 Jul. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 19,290,000 |
$1,201 |
-IDR 300,000 |
-$19 |
FD Jabodetabek |
|
mPE |
IDR 21,580,000 |
$1,344 |
-IDR 140,000 |
-$9 |
FD Jabodetabek |
|
LL inj |
IDR 20,110,000 |
$1,252 |
-IDR 300,000 |
-$19 |
FD Jabodetabek |
|
HD film |
IDR 18,720,000 |
$1,165 |
-IDR 290,000 |
-$18 |
FD Jabodetabek |
|
HD yarn |
IDR 18,720,000 |
$1,165 |
-IDR 290,000 |
-$18 |
FD Jabodetabek |
|
HD blow |
IDR 19,130,000 |
$1,191 |
-IDR 460,000 |
-$29 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 19,290,000 |
$1,201 |
-IDR 460,000 |
-$29 |
FD Jabodetabek |
|
PPH yarn |
IDR 18,150,000 |
$1,130 |
-IDR 450,000 |
-$28 |
FD Jabodetabek |
|
PPH inj |
IDR 18,150,000 |
$1,130 |
-IDR 450,000 |
-$28 |
FD Jabodetabek |
|
PP thin wall |
IDR 18,800,000 |
$1,170 |
-IDR 460,000 |
-$29 |
FD Jabodetabek |
|
BOPP |
IDR 18,640,000 |
$1,161 |
-IDR 450,000 |
-$28 |
FD Jabodetabek |
|
PP coating |
IDR 18,640,000 |
$1,161 |
-IDR 450,000 |
-$28 |
FD Jabodetabek |
|
PP thermo |
IDR 18,640,000 |
$1,161 |
-IDR 450,000 |
-$28 |
FD Jabodetabek |
|
PPRC |
IDR 21,580,000 |
$1,344 |
-IDR 140,000 |
-$9 |
FD Jabodetabek |
|
PPBC |
IDR 20,270,000 |
$1,262 |
+IDR 30,000 |
+$2 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 16,062 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
There is widespread speculation that the producer is now striving to regain market share after a period of reduced activity and high prices, which drove many buyers to the more competitive import market. Sources believe there may be further room for price reductions in the coming days.
"We plan to restock only once homo-PP yarn falls below the IDR 17,000,000 per ton threshold. We might not have to wait long, as local traders are eager to secure deals," commented a woven bag manufacturer.
Several Indonesian converters have reported a significant drop in end-product orders for the third quarter, attributed to challenging macroeconomic conditions. Some companies have experienced a 50% reduction in new orders.
Meanwhile, PE customers have started exploring new offers in the distribution market, hoping to secure additional discounts. Even HDPE film, a traditionally weaker-performing grade, has begun to attract interest this week, although pricing remains a significant concern.
Written by: Henny Sunarto
Edited by: Rochelle Nguyen