Local producer up-adjusted PP, PE offers in Indonesia

insight 18 Sep 2019

Local producer up-adjusted PP, PE offers in Indonesia

HD B/M HD Film LL C4 Film PPBC Inj PPH Inj PPH Raf

A major local producer in Indonesia has up-adjusted spot offers for PP and PE offers following a reduction at the beginning of the week. Firming international sentiment is regarded as the main support for the adjustment.

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

Material		Price List as of 18 Sept. 19	USD Equivalent	W.O.W Changes	USD Equivalent	Term
LL film		IDR 14,120,000	$1,003	+IDR 430,000	+$31	FD Jabodetabek, cash
LL inj		IDR 15,600,000	$1,108	+IDR 430,000	+$31	FD Jabodetabek, cash
HD film		IDR 14,260,000	$1,013	+IDR 430,000	+$31	FD Jabodetabek, cash
HD yarn		IDR 14,260,000	$1,013	+IDR 430,000	+$31	FD Jabodetabek, cash
IPP (PP Film)		IDR 16,870,000	$1,198	+IDR 430,000	+$31	FD Jabodetabek, cash
PPH yarn		IDR 16,430,000	$1,167	+IDR 420,000	+$30	FD Jabodetabek, cash
PPH inj		IDR 16,430,000	$1,167	+IDR 420,000	+$30	FD Jabodetabek, cash
BOPP		IDR 16,730,000	$1,188	+IDR 430,000	+$31	FD Jabodetabek, cash
PP coating		IDR 16,730,000	$1,188	+IDR 430,000	+$31	FD Jabodetabek, cash
PP thermo		IDR 16,860,000	$1,197	+IDR 420,000	+$30	FD Jabodetabek, cash
PPRC	IDR 19,590,000		$1,391	+IDR 420,000	+$30	FD Jabodetabek, cash
PPBC	IDR 17,430,000		$1,238	+IDR 420,000	+$30	FD Jabodetabek, cash
*Exchange Rate: USD 1 = IDR 14,082*

Many customers have purchased comfortable quantity at the beginning of the week at lower prices and tend to adopt a wait and see stance following the latest hike. However, it is expected that the market might show acceptance in the coming days given the fact that local supply is tightening.

“A domestic producer has recently shut LLDPE production due to negative margins while the other would on restart plant on 25 September after debottlenecking work. Availability is curtailing and buyers would have to accept higher prices,” a local trader commented.

Country
Indonesia