Indonesian producer surprisingly slashes local PP, PE offers; buyers scramble to assess impact
This significant drop in spot offers, along with adjustments in third-quarter 2024 contract pricing, has raised concerns among Indonesian buyers. Many have opted to delay purchases, citing uncertainty about the near-term price trajectory and supply availability.
HD Film LL C4 Film PPH Film PPH Raf
In an unexpected move following a national holiday, a major Indonesian producer sharply reduced its local offers for PP and PE, despite ongoing supply constraints, particularly for PE. The pricing decision has sent shockwaves through the domestic market, prompting many buyers to adopt a wait-and-see approach as they reassess the implications for both local and import markets.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 17 Sept. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 16,740,000 |
$1,089 |
-IDR 1,420,000 |
-$92 |
FD Jabodetabek |
|
mPE |
IDR 20,280,000 |
$1,319 |
-IDR 400,000 |
-$26 |
FD Jabodetabek |
|
LL inj |
IDR 18,260,000 |
$1,188 |
-IDR 400,000 |
-$26 |
FD Jabodetabek |
|
HD film |
IDR 16,900,000 |
$1,099 |
-IDR 950,000 |
-$62 |
FD Jabodetabek |
|
HD yarn |
IDR 17,760,000 |
$1,155 |
-IDR 90,000 |
-$6 |
FD Jabodetabek |
|
HD blow |
IDR 18,420,000 |
$1,198 |
-IDR 80,000 |
-$5 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 18,680,000 |
$1,215 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
PPH yarn |
IDR 17,180,000 |
$1,118 |
-IDR 70,000 |
-$5 |
FD Jabodetabek |
|
PPH inj |
IDR 17,180,000 |
$1,118 |
-IDR 70,000 |
-$5 |
FD Jabodetabek |
|
PP thin wall |
IDR 17,800,000 |
$1,158 |
-IDR 80,000 |
-$5 |
FD Jabodetabek |
|
BOPP |
IDR 17,520,000 |
$1,140 |
-IDR 80,000 |
-$5 |
FD Jabodetabek |
|
PP coating |
IDR 17,520,000 |
$1,140 |
-IDR 80,000 |
-$5 |
FD Jabodetabek |
|
PP thermo |
IDR 17,660,000 |
$1,149 |
-IDR 70,000 |
-$5 |
FD Jabodetabek |
|
PPRC |
IDR 20,880,000 |
$1,358 |
-IDR 100,000 |
-$7 |
FD Jabodetabek |
|
PPBC |
IDR 19,440,000 |
$1,265 |
-IDR 90,000 |
-$6 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,372 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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A trader familiar with the situation remarked that the substantial price cut is unusual, given that the producer usually refrains from causing market disruption. “While the supply of PP has somewhat improved, PE remains scarce, even in the import market. It seems the price reduction may have been overdone.”
This significant drop in spot offers, along with adjustments in third-quarter 2024 contract pricing, has raised concerns among Indonesian buyers. Many have opted to delay purchases, citing uncertainty about the near-term price trajectory and supply availability.
“The local market, including contractual transactions, is way more attractive than imports. The heightened competition between local and international suppliers might actually be favourable to us,” said a converter. The source is watching out closely for the availability of materials at the latest price levels and negotiation space before engaging in fresh replenishment.
Written by: Henny Sunarto
Edited by: Rochelle Nguyen