Indonesia’s largest local trading house reported to SSESSMENTS.COM on amending local and localized Southeast Asian PE, PP cargoes following Rupiah depreciation. This week, local and localized Southeast Asian HDPE Blow Moulding, HDPE Film and LLDPE Film C4 went up by IDR300,000/ton ($18/ton) as supported by Rupiah depreciation. Meanwhile, offers for localized LDPE Film of Malaysia origin remain unchanged. All changes compared to last week’s levels. Particularly for LDPE Film, the trader is still willing to sell lower but not more than IDR1,000,000/ton ($62/ton) lower than the initial offer level since supply for the grade is limited.
For PP cargoes, SSESSMENTS.COM was told that offers for local and localized Southeast Asian PP Homo Injection and PP Homo Raffia from the trader’s end were adjusted up by IDR100,000/ton ($6/ton). Likewise, offers for local and localized PP Homo Film cargoes were also hiked by IDR300,000/ton ($18/ton). All price changes are on a weekly comparison. Similar to PE, the price increases for PP also made due to the weakening Rupiah against US Dollar. From imports, PP Homo Raffia cargoes of Vietnam origin are currently available at $900/ton on LC at sight, CIF Indonesia Main Port basis. The trader claimed that the offers are unattractive considering the buy idea for import PP cargoes is mostly around $700-760/ton-level, referred to the leading Indonesian polyolefins producer’s deals with China buyers at $760/ton-level. As such, the trader is not going to ask inquiries for import cargoes as the prices are still expected to move even lower.
Further added to SSESSMENTS.COM, the trader is currently not offering a huge volume in anticipation of Coronavirus lockdown in Indonesia. Citing that if the Indonesian government enforces lockdown, cargoes delivery will be disrupted. Besides, most buyers are currently only procuring on an as-needed basis. Demand-wise, buying sentiment for PP in Indonesia is better than PE, a few customers are asking for big quantity. However, the trader could not guarantee the cargoes delivery considering the expectation of a lockdown scenario.
