Local PP, PE market in Indonesia plunged sharply as weak demand persists
Indonesian customers have been looking forwards to the pre-Ramadan demand, however, at the time of this report, only manufacturers in the HDPE bag sector witness a pent-up in demand.
A key Indonesian producer slashed spot PP and PE offers over the weekend as the weak demand condition persists while the heavy influx of import cargoes further weighed on the sentiment.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 25 Feb. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 18,400,000 |
$1,208 |
-IDR 560,000 |
-$37 |
FD Jabodetabek |
|
mPE |
IDR 20,000,000 |
$1,313 |
-IDR 940,000 |
-$62 |
FD Jabodetabek |
|
LL inj |
IDR 19,090,000 |
$1,254 |
-IDR 610,000 |
-$40 |
FD Jabodetabek |
|
HD film |
IDR 18,780,000 |
$1,233 |
-IDR 450,000 |
-$30 |
FD Jabodetabek |
|
HD yarn |
IDR 18,780,000 |
$1,233 |
-IDR 450,000 |
-$30 |
FD Jabodetabek |
|
HD blow |
IDR 19,010,000 |
$1,248 |
-IDR 480,000 |
-$32 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 20,060,000 |
$1,317 |
-IDR 1,380,000 |
-$91 |
FD Jabodetabek |
|
PPH yarn |
IDR 19,210,000 |
$1,261 |
-IDR 840,000 |
-$55 |
FD Jabodetabek |
|
PPH inj |
IDR 19,210,000 |
$1,261 |
-IDR 700,000 |
-$46 |
FD Jabodetabek |
|
PP thin wall |
IDR 20,200,000 |
$1,326 |
-IDR 330,000 |
-$22 |
FD Jabodetabek |
|
BOPP |
IDR 19,710,000 |
$1,294 |
-IDR 810,000 |
-$53 |
FD Jabodetabek |
|
PP coating |
IDR 19,710,000 |
$1,294 |
-IDR 810,000 |
-$53 |
FD Jabodetabek |
|
PP thermo |
IDR 19,900,000 |
$1,307 |
-IDR 700,000 |
-$46 |
FD Jabodetabek |
|
PPRC |
IDR 21,240,000 |
$1,395 |
-IDR 540,000 |
-$35 |
FD Jabodetabek |
|
PPBC |
IDR 20,370,000 |
$1,338 |
-IDR 470,000 |
-$31 |
FD Jabodetabek |
|
*All prices are excluded of 10% VAT *Exchange Rate: USD 1 = IDR 15,229 |
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As expected, spot PP film (IPP) registered the steepest plunge as Pertamina successfully restarted the 50,000 tons/year PP lines and resumed delivery obligations after months of delays.
Indonesian customers have been looking forwards to the pre-Ramadan demand, however, at the time of this report, only manufacturers in the HDPE bag sector witness a pent-up in demand.
“The producer’s price list has been at the upper end of the overall price range for too long and unavoidably pushing buyers to the more competitive source of supply – the import market. Further reductions will be necessary if the maker wishes to retain the competitiveness,” a buyer added.
In the import market, both PP and PE sectors fall under pressure as Chinese sellers aggressively tackle the export ground to compensate for the sluggish demand conditions at home. In addition, the emergence of new supply from PrefChem and Long Son Petrochemical also discourages buyers from keeping long stocks to avoid price risks.