Indonesian major lifted local PP and PE offers as currency exchange issue arises
A dominant Indonesian producer has reportedly raised spot PP and PE offers to the local market at the start of the week, despite sluggish demand conditions amid renewed currency exchange pressures.
A dominant Indonesian producer has reportedly raised spot PP and PE offers to the local market at the start of the week, despite sluggish demand conditions amid renewed currency exchange pressures. Market responses remained less than enthusiastic, given the continued availability of more competitively priced parcels from the distribution sector.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 11 Nov. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 17,750,000 |
$1,135 |
+IDR 60,000 |
+$4 |
FD Jabodetabek |
|
mPE |
IDR 20,470,000 |
$1,309 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
LL inj |
IDR 18,630,000 |
$1,191 |
+IDR 70,000 |
+$4 |
FD Jabodetabek |
|
HD film |
IDR 17,360,000 |
$1,110 |
+IDR 60,000 |
+$4 |
FD Jabodetabek |
|
HD yarn |
IDR 17,930,000 |
$1,146 |
+IDR 70,000 |
+$4 |
FD Jabodetabek |
|
HD blow |
IDR 18,600,000 |
$1,189 |
- |
- |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 19,170,000 |
$1,226 |
+IDR 390,000 |
+$25 |
FD Jabodetabek |
|
PPH yarn |
IDR 17,580,000 |
$1,124 |
+IDR 230,000 |
+$15 |
FD Jabodetabek |
|
PPH inj |
IDR 17,580,000 |
$1,124 |
+IDR 230,000 |
+$15 |
FD Jabodetabek |
|
PP thin wall |
IDR 18,130,000 |
$1,159 |
+IDR 230,000 |
+$15 |
FD Jabodetabek |
|
BOPP |
IDR 17,920,000 |
$1,146 |
+IDR 230,000 |
+$15 |
FD Jabodetabek |
|
PP coating |
IDR 17,920,000 |
$1,146 |
+IDR 230,000 |
+$15 |
FD Jabodetabek |
|
PP thermo |
IDR 17,990,000 |
$1,150 |
+IDR 230,000 |
+$15 |
FD Jabodetabek |
|
PPRC |
IDR 20,960,000 |
$1,340 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
PPBC |
IDR 19,620,000 |
$1,254 |
+IDR 80,000 |
+$5 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,642 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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Although the Indonesian Rupiah saw a modest recovery against the US dollar following the US Federal Reserve’s 0.25% rate cut on November 7, the currency remains approximately 3.6% weaker than its value in late September. Market participants note that this depreciation has compounded cost concerns for Indonesian producers, who largely refrained from price hikes throughout October.
“The market has been hesitant to raise offers due to sluggish demand, but rising costs are unavoidable. Unfortunately, there has been little response from buyers,” commented a local trader.
Following recent global political and economic events, Indonesian customers continued to adopt a cautious stance amid growing expectations of a more volatile outlook. Additionally, persistently weak end-product demand continues to weigh on the market.
Written by: Henny Sunarto
Edited by: Rochelle Nguyen