Indonesian producer holds PP, PE offers steady amid tightening market conditions
A major Indonesian petrochemical producer has kept its weekly PP and PE offers largely stable, with modest increases of $19-20/ton applied to metallocene PE (mPE) and HDPE blow molding grades.
A major Indonesian petrochemical producer has kept its weekly PP and PE offers largely stable, with modest increases of $19-20/ton applied to metallocene PE (mPE) and HDPE blow molding grades. This decision has sparked debate among market participants, particularly as traders push for price hikes, citing exchange rates and tightening supply outlook.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 18 Nov. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 17,750,000 |
$1,117 |
- |
- |
FD Jabodetabek |
|
mPE |
IDR 20,770,000 |
$1,307 |
+IDR 300,000 |
+$19 |
FD Jabodetabek |
|
LL inj |
IDR 18,630,000 |
$1,172 |
- |
- |
FD Jabodetabek |
|
HD film |
IDR 17,360,000 |
$1,092 |
- |
- |
FD Jabodetabek |
|
HD yarn |
IDR 17,930,000 |
$1,128 |
- |
- |
FD Jabodetabek |
|
HD blow |
IDR 18,910,000 |
$1,190 |
+IDR 310,000 |
+$20 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 19,170,000 |
$1,206 |
- |
- |
FD Jabodetabek |
|
PPH yarn |
IDR 17,580,000 |
$1,106 |
- |
- |
FD Jabodetabek |
|
PPH inj |
IDR 17,580,000 |
$1,106 |
- |
- |
FD Jabodetabek |
|
PP thin wall |
IDR 18,130,000 |
$1,141 |
- |
- |
FD Jabodetabek |
|
BOPP |
IDR 17,920,000 |
$1,128 |
- |
- |
FD Jabodetabek |
|
PP coating |
IDR 17,920,000 |
$1,128 |
- |
- |
FD Jabodetabek |
|
PP thermo |
IDR 17,990,000 |
$1,132 |
- |
- |
FD Jabodetabek |
|
PPRC |
IDR 20,960,000 |
$1,319 |
- |
- |
FD Jabodetabek |
|
PPBC |
IDR 19,620,000 |
$1,235 |
- |
- |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,893 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
Despite the producer’s list prices already sitting at the upper end of the market, traders report intensifying upward pressure. The depreciation of the Rupiah against the US dollar, combined with a tightening regional supply due to plant shutdowns across Vietnam, Thailand, the Philippines, and Malaysia, is exacerbating restocking costs.
A representative from a leading local trading house noted, “Import allocations are expected to dwindle until at least Q1 2025, particularly for non-dutiable cargoes. Rising costs from the weakening Rupiah mean buyers will inevitably face higher domestic prices.” The trader confirmed raising spot PP and PE offers twice since late last week, successfully concluding deals at revised price levels.
However, buyer activity has slowed as market participants adopt a cautious approach amid heightened market uncertainty. The ongoing Plastic and Rubber Indonesia Exhibition is expected to further temper trading this week. Nonetheless, industry sources remain optimistic about the demand outlook in December, driven by demand for Ramadan preparations.
Written by: Henny Sunarto
Edited by: Rochelle Nguyen