As SSESSMENTS.COM noted, domestic PE and PP prices in Indonesia were adjusted amid supply excess at the leading polyolefins producer in the country. Indonesia’s largest local trading house informed on applying price adjustments on local and localized PE PP cargoes this week. For PE Film grades, the trader applied downward adjustment of IDR400,000/ton ($27/ton) and IDR200,000/ton ($14/ton) respectively for local and localized Southeast Asian HDPE Film and LLDPE Film C4. While offers for localized Southeast Asian LDPE Film cargoes lowered by IDR100,000/ton ($7/ton). However, for HDPE Blow Moulding and HDPE Injection, the trader’s offers for local and localized Southeast Asian cargoes increased by IDR200,000/ton ($14/ton) and IDR300,000/ton ($20/ton) respectively as supported by the limited supply for these grades.
The trader explained to SSESSMENTS.COM that the reduction for PE Film grades is associated with the weak demand for finished products, especially after the implementation of the ban on single-use plastic bags in Jakarta. Moreover, the leading Indonesian polyolefins producer is under inventory pressure; hence, the producer is aggressively selling to the market. Additionally, the trader stated that it is possible to conclude the deals up to IDR500,000/ton ($34/ton) lower than the initial offer levels considering the current condition.
Similarly for PP, the leading Indonesian polyolefins producer is also under inventory pressure and in a rush to move the cargoes; hence, selling in the market at low prices. From the trader’s end, SSESSMENTS.COM was told that the offers for localized Southeast Asian PP Homopolymers decreased by IDR200,000/ton ($14/ton) from last week, except for PP Homo Thermoforming. For local cargoes, the trader does not have allocation this week. In the meantime, import Vietnamese PP Homo Raffia cargoes are available at $990/ton on LC at sight, CIF Indonesia Main Port basis. However, the trader is unwilling to purchase amid the price downtrend and slow demand in the domestic market.
