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Throughout the month of October, a major local producer in Indonesia has implemented two major price cuts on spot LLDPE film offers, totaling an IDR 630,000 ton/ton ($45/ton) reduction in a span of these four weeks. 

The latest price list announced earlier this week saw LLDPE film stands at IDR 13,720,000/ton excluding VAT ($979/ton), FD Indonesia term.

However, in the distribution market, buyers are able to obtain both locally produced and locally held imported cargoes in the range IDR 12,500,000-12,700,000/ton ($892-906/ton) with the same term. 

“The aggressive reduction in local LLDPE film offers has put overseas sellers in a very challenging position. We are forced to lower offers by $20/ton from last week in order to attract purchasing interest,” a Saudi Arabia producer reportedly concluded deal at $850/ton CIF Indonesia, said.

Indonesian players believed that the near term market outlook is rather bearish, as a major local producer has achieved a stable run rate after the debottlenecking project, which could boost supply further.

“We do not expect the local market to record any major rebound in the coming weeks regardless of the lack of supply from the Middle East and USA suppliers. Local availability remains comfortable,” a buyer added.   

Import LLDPE film based in CIF Indonesia, LC AS term currently stands in the range of $820-890/ton. 

Country
Indonesia