Indonesian producer rollover PP, PE offers to domestic market amid heightened competition
A persistently weak demand condition coupled with the cutthroat competition from the import market and the local distribution front eroded any effort from the maker to introduce fresh increases at the moment.
An Indonesian producer reportedly opened weekly PP and PE offers to local buyers at unchanged levels from the previous price announcement, shrugging off the renewed depreciation of the Rupiah against the US dollar that usually pushes local prices higher. A persistently weak demand condition coupled with the cutthroat competition from the import market and the local distribution front eroded any effort from the maker to introduce fresh increases at the moment.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 25 Nov. 23 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 18,380,000 |
$1,184 |
- |
- |
FD Jabodetabek |
|
mPE |
IDR 20,030,000 |
$1,290 |
- |
- |
FD Jabodetabek |
|
LL inj |
IDR 18,970,000 |
$1,222 |
- |
- |
FD Jabodetabek |
|
HD film |
IDR 19,110,000 |
$1,231 |
- |
- |
FD Jabodetabek |
|
HD yarn |
IDR 19,110,000 |
$1,231 |
- |
- |
FD Jabodetabek |
|
HD blow |
IDR 19,440,000 |
$1,252 |
- |
- |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 17,020,000 |
$1,096 |
+IDR 10,000 |
+$1 |
FD Jabodetabek |
|
PPH yarn |
IDR 16,480,000 |
$1,061 |
- |
- |
FD Jabodetabek |
|
PPH inj |
IDR 16,480,000 |
$1,061 |
- |
- |
FD Jabodetabek |
|
PP thin wall |
IDR 17,010,000 |
$1,095 |
- |
- |
FD Jabodetabek |
|
BOPP |
IDR 16,790,000 |
$1,081 |
- |
- |
FD Jabodetabek |
|
PP coating |
IDR 16,790,000 |
$1,081 |
- |
- |
FD Jabodetabek |
|
PP thermo |
IDR 16,640,000 |
$1,072 |
- |
- |
FD Jabodetabek |
|
PPRC |
IDR 18,570,000 |
$1,196 |
- |
- |
FD Jabodetabek |
|
PPBC |
IDR 18,490,000 |
$1,191 |
- |
- |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,529 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
In the meantime, it is reported that the producer encountered an unspecified technical issue at the PP plant, which crippled the company’s ability to fully deliver the contract obligations for all homo-PP grades. Sources said for the December contractual commitment, the producer would only be able to meet 90% of the committed quantities, except for homo-PP injection, which the producer cannot fulfil entirely.
Market players speculated that poor production margins might be one of the factors inducing the latest production disruption.
Indonesian customers started portraying an interest in securing additional PP film cargoes from the import market now that the US dollar-dominated market shows signs of stabilization following weeks of tracking the downtrend.
In contrast, PE players are adopting a cautious approach, refraining from large-quantity purchases. The decision is influenced by ongoing sales pressure in the distribution market, which has persisted and created a sense of apprehension among PE buyers.
A market source said, “Local HDPE and LLDPE film supply is more comfortable now that PT Lotte Chemical Titan Nusantara has stabilised production rates after the maintenance shutdown. Buyers largely opted to remain on the sidelines, strategically poised to seize potential discounts in the distribution market.”