A source from Indonesia’s largest local trading house contacted by SSESSMENTS.COM’s team shared the latest price adjustments. As compared to a fortnight ago, offers for local and localized Southeast Asian cargoes from the trader decreased by IDR400,000/ton ($27/ton) for LLDPE Film C4, and IDR100,000/ton ($7/ton) for HDPE Blow Moulding and localized Malaysian LDPE Film. While for HDPE Film, the offers remain unchanged. In contrast, offers for local and localized Southeast Asian HDPE Injection increased by IDR400,000/ton ($27/ton) during the same time frame. The trader explained, “The major ground of the downward price correction is the slow demand in the market, does not correlate with the restart-up of the leading Indonesian polyolefins producer’s LLDPE plant. For transactions on cash basis, we are willing to sell between IDR300,000-400,000/ton ($21-27/ton) lower than our current offers for LLDPE Film C4.”
Likewise, the producer also made a downward price adjustment for local and localized PP Homo Raffia and PP Homo Injection of Southeast Asia origin. Compared to two weeks ago, offers for these grades declined by IDR200,000/ton ($14/ton). For local and localized Southeast Asian PP Homo Film, the offers are rolled-over. Just like PE, SSESSMENTS.COM noted that the negotiation room of between IDR300,000-400,000/ton ($21-27/ton) remains open for transactions on cash basis and depending on the purchasing volume.
In the import market, offers for HDPE Film of Thailand origin are available between $960-970/ton. For PP Homo Raffia of Vietnam origin, the offers are at $990/ton, all on LC at sight, CIF Indonesia main port basis. The trader revealed to SSESSMENTS.COM that so far, the company does not have any plan to purchase import cargoes. In the upcoming month, the trader opined that imported cargoes coming into the country will be lesser as most converters prefer to source locally.
