Major local producer slashed PP, PE prices drastically in Indonesia

insight 02 Sep 2019

Major local producer slashed PP, PE prices drastically in Indonesia

On the first trading day of September, a major local producer in Indonesia decided to slash local prices drastically from the previous week on the back of comfortable supply and bearish near-term outlook.

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

Material		Price List as of 02 Sept. 19	USD Equivalent	W.O.W Changes	USD Equivalent	Term
LL film		IDR 14,470,000	$1,021	- IDR 770,000	-$54	FD Jabodetabek, cash
LL inj		IDR 15,970,000	$1,127	- IDR 570,000	-$40	FD Jabodetabek, cash
HD film		IDR 14,760,000	$1,041	- IDR 490,000	-$35	FD Jabodetabek, cash
HD yarn		IDR 14,760,000	$1,041	- IDR 490,000	-$35	FD Jabodetabek, cash
IPP (PP Film)		IDR 17,120,000	$1,208	- IDR 280,000	-$20	FD Jabodetabek, cash
PPH yarn		IDR 16,680,000	$1,177	- IDR 290,000	-$20	FD Jabodetabek, cash
PPH inj		IDR 16,680,000	$1,177	- IDR 290,000	-$20	FD Jabodetabek, cash
BOPP		IDR 16,980,000	$1,198	- IDR 350,000	-$25	FD Jabodetabek, cash
PP coating		IDR 16,980,000	$1,198	- IDR 350,000	-$25	FD Jabodetabek, cash
PP thermo		IDR 17,110,000	$1,207	- IDR 290,000	-$20	FD Jabodetabek, cash
PPRC	IDR 19,880,000		$1,402	- IDR 280,000	-$20	FD Jabodetabek, cash
PPBC	IDR 17,690,000		$1,248	- IDR 150,000	-$11	FD Jabodetabek, cash
*Exchange Rate: USD 1 = IDR 14,175*

A number of Indonesian buyers prefer to source cargoes from the distribution market as traders are willing to negotiate price and payment term to deplete on-hand cargoes.

“We are surprised that the producer decided to implement such a steep price reduction given the lack of inventories pressure amid the on-going maintenance shutdown at the petchem complex. The market situation might become more wary once these units restart,” a market source said.

Country
Indonesia