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The domestic LLDPE film market in Indonesia reaches its all time low this year in recent days as a result of bloated local availability and traders are rushing to deplete inventories before major domestic maker cut contract prices for Q1 2019. Pressure is mounting up follow the deals for USA LLDPE film at below the $1000/ton threshold.

In fact, it is reported that deals for about 200 tons of prime grade LLDPE film originated from the USA have achieved at $980/ton CIF Indonesia, LC AS term for January shipment, arriving in March 2019.

“Market has breached below the psychological threshold and this is very alarming. We have to watch out for next development in the local ground,” a buyer commented.

A trader sold the USA cargoes explained that long shipment cargoes are loosing competitive as Middle Eastern suppliers reduce LLDPE film prices significantly for December shipment. “We are under pressure to maintain the competitiveness,” the source added.

Import LLDPE film to Indonesia at the moment stand at $980-1050/ton, all based on CIF Indonesia, LC AS term.   

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Indonesia