Indonesian players: Weak demand pulls local HDPE and LLDPE film down

Spot HDPE and LLDPE film offers in Indonesia have been steadily going down over the past weeks due to the sluggish demand condition in the country. 

Compared to last week, LLDPE film price based on FD Indonesia, without VAT has fallen $25/ton on an average while HDPE film dropped $15/ton, according to CommoPlast Price Index. 

Market is amid the preparation period for the Ramadan season and demand would normally pick up during this time. However, the uncertainties pertaining to the General Election results are scaring buyers away. Many customers refused to stock up materials until the election is over.

“Buyers are not very active even after the discount. The election negatively affects the market sentiment,” a trader said.

Weak demand has also undermined the impact from firming import offers that have been taking place across the region in the recent week. Indonesian buyers decided to withdraw to the local ground to meet the immediate requirement instead of accommodating higher international prices.

Meanwhile, a segment of customers started showing the interest to make replenishment at the moment when sellers are willing to negotiate. “Because customers don’t stock up now, they might buy after the election. We are talking to suppliers to obtain some discounts this week,” a buyer reported.