Indonesian producer kickstarted the new year with steep hikes on PP cargoes
The Indonesian PP and PE market concluded 2023 on a strong note with a key domestic producer introducing two consecutive hikes just before taking off for the long New Year holiday.
The Indonesian PP and PE market concluded 2023 on a strong note with a key domestic producer introducing two consecutive hikes just before taking off for the long New Year holiday. The uptrend has not shown any sign of a slowdown just yet. The same producer begins 2024 with a fresh round of price increments, particularly for PP, which sees a steep rise of $55/ton from the pre-holiday week.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 02 Jan. 24 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 19,420,000 |
$1,262 |
+IDR 390,000 |
+$25 |
FD Jabodetabek |
|
mPE |
IDR 20,290,000 |
$1,319 |
- |
- |
FD Jabodetabek |
|
LL inj |
IDR 19,990,000 |
$1,299 |
+IDR 370,000 |
+$24 |
FD Jabodetabek |
|
HD film |
IDR 19,670,000 |
$1,279 |
+IDR 220,000 |
+$14 |
FD Jabodetabek |
|
HD yarn |
IDR 19,670,000 |
$1,279 |
+IDR 220,000 |
+$14 |
FD Jabodetabek |
|
HD blow |
IDR 19,910,000 |
$1,294 |
+IDR 220,000 |
+$14 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 20,050,000 |
$1,303 |
+IDR 840,000 |
+$55 |
FD Jabodetabek |
|
PPH yarn |
IDR 19,670,000 |
$1,279 |
+IDR 840,000 |
+$55 |
FD Jabodetabek |
|
PPH inj |
IDR 19,670,000 |
$1,279 |
+IDR 840,000 |
+$55 |
FD Jabodetabek |
|
PP thin wall |
IDR 20,190,000 |
$1,312 |
+IDR 840,000 |
+$55 |
FD Jabodetabek |
|
BOPP |
IDR 20,300,000 |
$1,320 |
+IDR 840,000 |
+$55 |
FD Jabodetabek |
|
PP coating |
IDR 20,300,000 |
$1,320 |
+IDR 840,000 |
+$55 |
FD Jabodetabek |
|
PP thermo |
IDR 20,150,000 |
$1,310 |
+IDR 840,000 |
+$55 |
FD Jabodetabek |
|
PPRC |
IDR 20,460,000 |
$1,330 |
+IDR 290,000 |
+$19 |
FD Jabodetabek |
|
PPBC |
IDR 19,820,000 |
$1,288 |
+IDR 220,000 |
+$14 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 15,385 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
|||||
In the aftermath of the relentless upward price adjustments by the producer, buyers find themselves grappling with the highest raw material costs since the beginning of 2023. Expressing the concern, a distributor remarked, "We await feedback from buyers in the spot market, but we hold a cautious outlook on selling large volumes at the current prices, considering the challenges faced by end-product converters in raising their selling prices."
Trading sentiment in Indonesia remained relatively calm on the first day of the year as many market participants were still away from their desks. However, in the prior week, deals for non-dutiable Vietnamese homo-PP yarn were concluded at $1095/ton CIF Indonesia for January loading – a $65/ton increase from the week before. The surprising transactions partially underlined expectations among Indonesian buyers for sharp price hikes from local producers ahead of the implementation of the Import Quota system on 10 March 2023.
“Import offers for February loading were much lower but we were not willing to take the shipping risks, considering a series of events taking place in February including the Lunar New Year and the General Election,” a buyer added.
Many Indonesian buyers are assessing the impact of the latest rise in PP and PE offers from major local producers on the finished goods market. At the time being, many converters are still struggling to secure sufficient new PO leave alone raising selling prices quickly enough to cover the raw material costs.