Indonesian PP and PE markets turned stable to soft; the HDPE sector weakened amid increased competition
A key Indonesian producer has announced weekly PP and PE offers to the domestic spot market, and surprisingly, the suppliers maintained LLDPE offers largely unchanged despite the recent 50% cut in contract allocations for December.
A key Indonesian producer has announced weekly PP and PE offers to the domestic spot market, and surprisingly, the suppliers maintained LLDPE offers largely unchanged despite the recent 50% cut in contract allocations for December. Market participants initially expected larger price hikes on these cargoes.
On the other hand, spot HDPE offers plunged by IDR 380,000 – 540,000/ton depending on the grade. This drop has been attributed to heightened competition from the influx of competitively priced USA materials.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 07 Dec. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 17,930,000 |
$1,133 |
+IDR 20,000 |
+$1 |
FD Jabodetabek |
|
mPE |
IDR 20,980,000 |
$1,325 |
+IDR 30,000 |
+$2 |
FD Jabodetabek |
|
LL inj |
IDR 18,820,000 |
$1,189 |
+IDR 20,000 |
+$1 |
FD Jabodetabek |
|
HD film |
IDR 16,980,000 |
$1,073 |
-IDR 540,000 |
-$34 |
FD Jabodetabek |
|
HD yarn |
IDR 17,550,000 |
$1,109 |
-IDR 540,000 |
-$34 |
FD Jabodetabek |
|
HD blow |
IDR 18,690,000 |
$1,181 |
-IDR 380,000 |
-$24 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 19,350,000 |
$1,222 |
+IDR 30,000 |
+$2 |
FD Jabodetabek |
|
PPH yarn |
IDR 17,740,000 |
$1,121 |
-IDR 50,000 |
-$3 |
FD Jabodetabek |
|
PPH inj |
IDR 17,740,000 |
$1,121 |
-IDR 50,000 |
-$3 |
FD Jabodetabek |
|
PP thin wall |
IDR 18,300,000 |
$1,156 |
-IDR 50,000 |
-$3 |
FD Jabodetabek |
|
BOPP |
IDR 18,010,000 |
$1,138 |
-IDR 50,000 |
-$3 |
FD Jabodetabek |
|
PP coating |
IDR 18,010,000 |
$1,138 |
-IDR 50,000 |
-$3 |
FD Jabodetabek |
|
PP thermo |
IDR 18,160,000 |
$1,147 |
-IDR 50,000 |
-$3 |
FD Jabodetabek |
|
PPRC |
IDR 21,070,000 |
$1,331 |
-IDR 50,000 |
-$3 |
FD Jabodetabek |
|
PPBC |
IDR 19,570,000 |
$1,236 |
-IDR 50,000 |
-$3 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,831 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
"The market is quiet. Buyers are well-stocked and in no immediate need for additional purchases. There is little indication of a significant uptick in demand in preparation for Ramadan within the PP and PE sectors," a local trader remarked.
While the LLDPE film market remains relatively firm compared to other grades, the lack of demand support raises concerns about the sustainability of this trend.
Several import-dependent traders have expressed cautious expectations for the near-term market outlook. In addition to the prevailing macroeconomic uncertainties, there are expectations of an increased supply from the USA, driven by reduced demand in key importing regions such as Latin America.
"We are refraining from new purchases at this time. The price risks are simply too high," another trader commented.
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Written by: Henny Sunarto
Edited by: Rochelle Nguyen