SSESSMENTS.COM’s market reporting team talking to thousand of sources in Indonesia and the region reported that the leading Indonesian Polyolefins producer made almost $100/ton price reductions on PE offers across different grades. As for PP, the Indonesian producer implemented shocking decreases of as much as IDR3,000,000/ton ($218/ton), all compared to a week earlier.
According to sources contacted by SSESSMENTS.COM, the reasons behind the producer’s drastic price changes is due to a build-up of inventory and sales pressure, strong resistance from buyers, intense competition on PE and PP import prices, as well as competitors were offering at much lower prices. Market players close to the producer also said that some shipments to China were canceled due to Coronavirus outbreak, therefore the producer is in distraught to deplete their inventory particularly for LLDPE Film as supply is ample.
