Domestic PP and PE market in Indonesia continues to gallop lower

insight 18 Nov 2019

Domestic PP and PE market in Indonesia continues to gallop lower

HD Film LL C4 Film PPH Inj PPH Raf

Indonesian players on the first trading day of the week reported receiving fresh PP and PE offers from a major local producer with an additional reduction from the previous week.

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

Material	Price List as of 18 Nov. 19	USD Equivalent	W.O.W Changes	USD Equivalent	Term
*Combined and reported by CommoPlast*
LL film	IDR 12,540,000	$892	-IDR 280,000	-$20	FD Jabodetabek
LL inj	IDR 13,810,000	$982	-IDR 280,000	-$20	FD Jabodetabek
HD film	IDR 13,150,000	$935	-IDR 280,000	-$20	FD Jabodetabek
HD yarn	IDR 13,150,000	$935	-IDR 280,000	-$20	FD Jabodetabek
HD blow	IDR 13,440,000	$956	-IDR 280,000	-$20	FD Jabodetabek
IPP (PP Film)	IDR 16,630,000	$1,183	-IDR 140,000	-$10	FD Jabodetabek
PPH yarn	IDR 16,050,000	$1,141	-IDR 150,000	-$11	FD Jabodetabek
PPH inj	IDR 16,050,000	$1,141	-IDR 150,000	-$11	FD Jabodetabek
BOPP	IDR 16,350,000	$1,163	-IDR 140,000	-$10	FD Jabodetabek
PP coating	IDR 16,350,000	$1,163	-IDR 140,000	-$10	FD Jabodetabek
PP thermo	IDR 16,490,000	$1,173	-IDR 140,000	-$10	FD Jabodetabek
PPRC	IDR 19,230,000	$1,368	-IDR 140,000	-$10	FD Jabodetabek
PPBC	IDR 16,210,000	$1,153	-IDR 280,000	-$20	FD Jabodetabek
All prices are excluded of 10% VAT Exchange Rate: USD 1 = IDR 14,062

The latest price list sees all PE grades return to the three-digits territory and customers are very aggressive in placing bids. This is because deals in the distribution market have dropped significantly from the price list since the previous week.

“We are targeting HDPE film at IDR 12,500,000/ton ($889/ton) without VAT, FD Indonesia term to make purchases. Although supply for this grade in the local market is not very comfortable at the moment, weak demand might force sellers to agree to the level,” a buyer said.

Country
Indonesia