Local PP and PE in Indonesia increase visibly on the exchange rate

insight 23 Mar 2020

Local PP and PE in Indonesia increase visibly on the exchange rate

Spot offers for both PP and PE from a major local producer in Indonesia increased drastically on the first trading day of the week as a result of the steep depreciation of the local currency against the US dollar.

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

Material	Price List as of 23 Mar. 20	USD Equivalent	W.O.W Changes	USD Equivalent	Term
*Combined and reported by CommoPlast*
LL film	IDR 13,400,000	$833	+IDR 620,000	+$39	FD Jabodetabek
LL inj	IDR 14,940,000	$929	+IDR 620,000	+$39	FD Jabodetabek
HD film	IDR 14,200,000	$883	+IDR 930,000	+$58	FD Jabodetabek
HD yarn	IDR 14,200,000	$883	+IDR 930,000	+$58	FD Jabodetabek
HD blow	IDR 14,130,000	$878	+IDR 930,000	+$58	FD Jabodetabek
IPP (PP Film)	IDR 15,490,000	$963	+IDR 620,000	+$39	FD Jabodetabek
PPH yarn	IDR 14,870,000	$924	+IDR 620,000	+$39	FD Jabodetabek
PPH inj	IDR 14,870,000	$924	+IDR 620,000	+$39	FD Jabodetabek
BOPP	IDR 15,280,000	$950	+IDR 620,000	+$39	FD Jabodetabek
PP coating	IDR 15,280,000	$950	+IDR 620,000	+$39	FD Jabodetabek
PP thermo	IDR 15,000,000	$932	+IDR 620,000	+$39	FD Jabodetabek
PPRC	IDR 17,100,000	$1,063	+IDR 620,000	+$39	FD Jabodetabek
PPBC	IDR 16,000,000	$995	+IDR 780,000	+$48	FD Jabodetabek
All prices are excluded of 10% VAT Exchange Rate: USD 1 = IDR 16,086

Based on OANDA data, the Indonesian Rupiah has depreciated about 7.8% in the span of one (1) week, reaching IDR16,086 as of 23 March 2020. However, purchasing interest remains very sluggish, as buyers have either completed replenishment or having low confidence in the near-term outlook.

“The market fundamental is weak. The fasting month is around the corner while the Covid-19 outbreak adds more uncertainties to the already dull sentiment. We prefer to be cautious,” a market source informed.

Country
Indonesia