Print

After a prolonged period of tracking the downtrend, the local HDPE and LLDPE film market in Indonesia started regaining strength and potentially hiking further in the near term.

Data from CommoPlast showed a surge of IDR374,000/ton ($26/ton) on an average for LLDPE film compared to last week, while HDPE film prices jumped IDR210,000/ton ($15/ton) in the same period. Stronger demand and tighter supply are the drivers behind such development, players said.

There has been a mild panic buying among Indonesian buyers, who are unable to obtain discounts or quantity in the import market and decided to rush for replenishment in the local ground. 

“However, domestic supply is not too high recently. One of the local producers is unable to fulfill all spot inquiries due to production issues,” a trader informed. The source added that they are planning to introduce a new price hike in the coming week.

Meanwhile, players are blaming the delay in shipment for USA materials for the limited supply in the local ground. A number of converters are actively seeking materials in preparation for the Ramadan season, which comes earlier this year.

“We just purchased some LLDPE film quantity at IDR16,400,000/ton ($1161/ton) without VAT and the suppliers immediately lifted prices by IDR200,000/ton ($15/ton) when we asked for additional quantity. The market is on a rollercoaster,” a buyer reported.

While the near-term market outlook in local Indonesia market is rather bright, a number of buyers believed that room for further hike is now narrower. Customers might return to the import front would the domestic suppliers introduce too large increment. 

Country
Indonesia