CommoPlast

Indonesian producer rollovered PP, PE offers after strong sales results

insight 03 Jul 2023

The latest offers somewhat surprised the market, however, there have been discussions that a weak global economic outlook might have overshadowed sellers’ confidence.


A major domestic producer in Indonesia decided to implement a conservative pricing decision even after strong pre-holiday replenishment activities in the previous week that help suppliers here to deplete a large of their on-hand stocks.

The producer’s latest price list and changes compared to last week are shown in the following table: 

Material

Price List as of 03 Jul. 23

USD Equivalent

W.O.W Changes

USD Equivalent

Term

Combined and reported by CommoPlast

LL film

IDR 16,400,000

$1,090

-

-

FD Jabodetabek

mPE

IDR 18,130,000

$1,205

-

-

FD Jabodetabek

LL inj

IDR 17,000,000

$1,130

-

-

FD Jabodetabek

HD film

IDR 17,110,000

$1,137

-

-

FD Jabodetabek

HD yarn

IDR 17,110,000

$1,137

-

-

FD Jabodetabek

HD blow

IDR 17,340,000

$1,153

-

-

FD Jabodetabek

IPP (PP Film)

IDR 15,500,000

$1,030

-

-

FD Jabodetabek

PPH yarn

IDR 14,600,000

$970

-

-

FD Jabodetabek

PPH inj

IDR 14,600,000

$970

-

-

FD Jabodetabek

PP thin wall

IDR 15,130,000

$1,006

-

-

FD Jabodetabek

BOPP

IDR 15,200,000

$1,010

-

-

FD Jabodetabek

PP coating

IDR 15,200,000

$1,010

-

-

FD Jabodetabek

PP thermo

IDR 14,900,000

$990

-

-

FD Jabodetabek

PPRC

IDR 16,700,000

$1,110

-

-

FD Jabodetabek

PPBC

IDR 15,850,000

$1,054

+IDR 200,000

+$13

FD Jabodetabek

*All prices are excluded of 11% VAT

*Exchange Rate: USD 1 = IDR 15,044

*Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000

 

Market participants initially expected small to moderate price increases from the maker considering the substantially reduced inventory pressure. The latest offers somewhat surprised the market, however, there have been discussions that a weak global economic outlook might have overshadowed sellers’ confidence.

“The producer’s list price has been at the upper end of the overall price range for some time, hence, the stabilizing trend. In the distribution market, traders are lifting their offers, but initial responses from buyers are weaker than expected,” said, a market source.

 

As reported earlier, Indonesian buyers are monitoring the start-up at Malaysia’s PrefChem plant to gauge the supply outlook. More PP and PE cargoes from this origin might emerge in the coming weeks as the producer ramps up the operating rates.

Country
Indonesia