Local maker up-adjusted LLDPE offers in Indonesia

Two days after introducing large hike on HDPE cargoes, a major domestic producer in Indonesia continue lifting LLDPE prices for the second time, adding another $20/ton to the latest price list, bringing a total hike on this grade to $30/ton compared to last week.

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

Contributing to the continuous price increment is the persistent strong upstream ethylene costs and lack of local availability. However, buyers are not showing the eager to stock up inventory amid slow end product businesses. Meanwhile, traders are concerning that buyers would eventually turn to import ground for LLDPE film given the competitive prices. “There is a gap of more than $100/ton between the producer’s price list and import offers from prominent Middle Eastern makers. This is not a good news for local suppliers,” a trader said.