Major Indonesian producer continues slashing local PP and PE offers

insight 17 Jun 2019

Major Indonesian producer continues slashing local PP and PE offers

For the second week in a row after the long holiday, a major local producer in Indonesia has announced spot offers with a drastic reduction on the back of soft demand and weakening international market.

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

Material		Price List as of 17 Jun 19	USD Equivalent	W.O.W Changes	USD Equivalent	Term
LL film		IDR 15,620,000	$1,091	-IDR 580,000	-$41	FD Jabodetabek, cash
LL inj		IDR 16,930,000	$1,182	-IDR 570,000	-$40	FD Jabodetabek, cash
HD film		IDR 16,210,000	$1,132	-IDR 850,000	-$59	FD Jabodetabek, cash
HD yarn		IDR 16,210,000	$1,132	-IDR 850,000	-$59	FD Jabodetabek, cash
IPP (PP Film)		IDR 17,210,000	$1,202	-IDR 580,000	-$41	FD Jabodetabek, cash
PPH yarn		IDR 16,780,000	$1,172	-IDR 570,000	-$40	FD Jabodetabek, cash
PPH inj		IDR 16,780,000	$1,172	-IDR 570,000	-$40	FD Jabodetabek, cash
BOPP		IDR 17,360,000	$1,212	-IDR 570,000	-$40	FD Jabodetabek, cash
PP coating		IDR 17,360,000	$1,212	-IDR 570,000	-$40	FD Jabodetabek, cash
PP thermo		IDR 17,210,000	$1,202	-IDR 580,000	-$41	FD Jabodetabek, cash
PPRC	IDR 19,970,000		$1,395	-IDR 570,000	-$40	FD Jabodetabek, cash
PPBC	IDR 17,790,000		$1,242	-IDR 290,000	-$20	FD Jabodetabek, cash
*Exchange Rate: USD 1 = IDR 14,318*

Sources are very concern with the latest price decision considering the fact that local supply is curtailing as the producer is cutting allocation much larger than initial planned due to the upcoming maintenance shutdown. As a result, in the previous week, several authorised distributors of the producer had suspended all offerings of PE cargoes.

“Customers might preserve the wait-and-see stance further. Overseas sellers would also find it difficult to attract deals this week,” a local buyer commented.

Country
Indonesia