Local PP and PE market in Indonesia inch higher on exchange rate, stronger regional outlook
The local PP and PE markets in Indonesia saw marginal price increases at the start of the week, driven by the depreciation of the Indonesian Rupiah against the US dollar and a cautiously optimistic regional outlook.
The local PP and PE markets in Indonesia saw marginal price increases at the start of the week, driven by the depreciation of the Indonesian Rupiah against the US dollar and a cautiously optimistic regional outlook. A key domestic producer raised spot PP and PE offers, citing currency fluctuations and firmer sentiment across broader Asian markets.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 07 Oct. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 17,520,000 |
$1,120 |
+IDR 470,000 |
+$30 |
FD Jabodetabek |
|
mPE |
IDR 20,390,000 |
$1,304 |
+IDR 110,000 |
+$7 |
FD Jabodetabek |
|
LL inj |
IDR 18,360,000 |
$1,174 |
+IDR 100,000 |
+$6 |
FD Jabodetabek |
|
HD film |
IDR 17,220,000 |
$1,101 |
+IDR 320,000 |
+$20 |
FD Jabodetabek |
|
HD yarn |
IDR 17,860,000 |
$1,142 |
+IDR 100,000 |
+$6 |
FD Jabodetabek |
|
HD blow |
IDR 18,600,000 |
$1,189 |
+IDR 180,000 |
+$12 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 18,780,000 |
$1,201 |
+IDR 100,000 |
+$6 |
FD Jabodetabek |
|
PPH yarn |
IDR 17,350,000 |
$1,109 |
+IDR 170,000 |
+$11 |
FD Jabodetabek |
|
PPH inj |
IDR 17,350,000 |
$1,109 |
+IDR 170,000 |
+$11 |
FD Jabodetabek |
|
PP thin wall |
IDR 17,900,000 |
$1,145 |
+IDR 100,000 |
+$6 |
FD Jabodetabek |
|
BOPP |
IDR 17,690,000 |
$1,131 |
+IDR 170,000 |
+$11 |
FD Jabodetabek |
|
PP coating |
IDR 17,690,000 |
$1,131 |
+IDR 170,000 |
+$11 |
FD Jabodetabek |
|
PP thermo |
IDR 17,760,000 |
$1,136 |
+IDR 100,000 |
+$6 |
FD Jabodetabek |
|
PPRC |
IDR 20,880,000 |
$1,335 |
- |
- |
FD Jabodetabek |
|
PPBC |
IDR 19,540,000 |
$1,249 |
+IDR 100,000 |
+$6 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,640 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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According to Oanda data, the Rupiah has depreciated by approximately 3.3% since early October 2024, falling to 15,640 against the dollar as of 7 October. This weakening of the local currency has typically exerted upward pressure on commodity prices denominated in Rupiah.
"The hikes are also supported by the increase in 4Q2024 contract prices," said a local trader, highlighting that rising contract prices are also influencing the market, though some remain wary of how long this trend can last.
While Southeast Asia’s market sentiment showed signs of recovery, with heightened expectations for post-holiday demand in China, the local market in Indonesia continues to exhibit caution. Since last week, regional buyers have become more active in securing competitive cargoes, anticipating a $30-50/ton increase in new PP and PE import offers once China’s trading resumes on 8 October. Despite this, Indonesian buyers remain conservative, hesitating to make substantial restocking moves due to concerns over weak end-product demand.
"Only smaller-scale buyers are restocking, while larger-scale customers remain on the sidelines, opting to use existing inventories," one industry source noted. Despite the upward pressure on domestic prices, the broader market continues to grapple with sluggish demand fundamentals, casting doubt on the strength and longevity of the current price rally.
Written by: Henny Sunarto
Edited by: Rochelle Nguyen