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After a drastic price cut implemented in the previous week, a major domestic producer in Indonesia rollover PP and PE prices for this week citing lower inventories pressure. On the other hand, offers for PE in the distribution market continue to journey south, though buyers are delaying to make purchases.

In fact, offers for HDPE film drop IDR100,000/ton to IDR17,600,000/ton ($1300/ton) while LLDPE film down IDR300,000/ton to IDR17,400,000/ton ($1285/ton), FD Indonesia, 30 days term. Sources added that cash term basis, offers for both grades reach IDR17,200,000/ton ($1270/ton) with the same term.

“We plan to monitor market a little longer before making fresh buy. Demand for our end product is good at the moment. We hope to obtain additional discount in the coming days,” a mulch sheet manufactured received offers for LLDPE film said.

At the meantime, traders are facing pressure as many converters are selling out extra stock at relatively competitive levels. “Demand is weak and we are very concern over the near term outlook. Tight HDPE film supply from overseas sellers might support local sentiment to a certain extent, however, LLDPE film is under pressure,” a trader said.