Key Indonesian producer slashed local PP, PE offers on currency exchange
Over the past week, the Rupiah appreciated by about 5% against the US dollar, driven by expectations of the Federal Reserve lowering key interest rates in September. A stronger local currency typically leads to a drop in commodity prices traded in that currency.
A key Indonesian producer has sharply reduced local PP and PE offers despite a shortage of ready-stock cargo and ongoing production disruptions. The appreciation of the Rupiah against the US dollar has prompted buyers to hold off on purchases, anticipating further price declines.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 17 Aug. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 17,730,000 |
$1,130 |
-IDR 1,140,000 |
-$73 |
FD Jabodetabek |
|
mPE |
IDR 20,680,000 |
$1,318 |
-IDR 900,000 |
-$57 |
FD Jabodetabek |
|
LL inj |
IDR 18,620,000 |
$1,187 |
-IDR 1,080,000 |
-$69 |
FD Jabodetabek |
|
HD film |
IDR 17,740,000 |
$1,131 |
-IDR 980,000 |
-$62 |
FD Jabodetabek |
|
HD yarn |
IDR 17,740,000 |
$1,131 |
-IDR 980,000 |
-$62 |
FD Jabodetabek |
|
HD blow |
IDR 18,380,000 |
$1,172 |
-IDR 750,000 |
-$48 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 18,600,000 |
$1,186 |
-IDR 600,000 |
-$38 |
FD Jabodetabek |
|
PPH yarn |
IDR 17,250,000 |
$1,099 |
-IDR 640,000 |
-$41 |
FD Jabodetabek |
|
PPH inj |
IDR 17,250,000 |
$1,099 |
-IDR 640,000 |
-$41 |
FD Jabodetabek |
|
PP thin wall |
IDR 17,880,000 |
$1,140 |
-IDR 660,000 |
-$42 |
FD Jabodetabek |
|
BOPP |
IDR 17,570,000 |
$1,120 |
-IDR 980,000 |
-$62 |
FD Jabodetabek |
|
PP coating |
IDR 17,570,000 |
$1,120 |
-IDR 980,000 |
-$62 |
FD Jabodetabek |
|
PP thermo |
IDR 17,730,000 |
$1,130 |
-IDR 650,000 |
-$41 |
FD Jabodetabek |
|
PPRC |
IDR 20,620,000 |
$1,314 |
-IDR 710,000 |
-$45 |
FD Jabodetabek |
|
PPBC |
IDR 19,410,000 |
$1,237 |
-IDR 620,000 |
-$40 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,689 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
Over the past week, the Rupiah appreciated by about 5% against the US dollar, driven by expectations of the Federal Reserve lowering key interest rates in September. A stronger local currency typically leads to a drop in commodity prices traded in that currency.
“Offers from both the producer and the distribution market have dropped drastically. We hope buyers find the new prices attractive enough to return to the market,” commented a trader.
In related news, Chandra Asri is expected to restart its 900,000 tons/year cracker by the end of August following an unexpected shutdown in late July. Currently, the downstream PP and PE units are offline, but sources believe supply will return in September.
Since last week, Indonesian buyers have been limiting new purchases, partly due to the sluggish end-product businesses and the growing expectations over further price reductions. At the time of this report, buying sentiment remained sluggish as buyers prefer to assess the situation before making decisions.
Written by: Henny Sunarto
Edited by: Rochelle Nguyen