An Indonesian converter reported to SSESSMENTS.COM that the company has been dragged into uncertainty, awaiting confirmation on bids for import PE cargoes. Compared to a week earlier, the offers for import HDPE Film cargoes from a United Arab Emirates producer captured higher by $50/ton, standing at $920/ton. Bids were submitted at $40/ton lower than the initial offer level but there is no response from the producer yet. Likewise, the offers for import HDPE Film from a Saudi producer has gone up as much as $70/ton from last month, currently available at $950/ton. The offers are certainly deemed too high as buy idea for Middle Eastern HDPE Film cargoes is only at $900/ton-level at the highest. Hence, the converter is unwilling to submit bids; prefers to wait for the response from the United Arab Emirates producer.
From a Kuwaiti producer, the converter told SSESSMENTS.COM that there is no allocation for HDPE Film to the Indonesia market. However, there is no detailed information on the reason behind the absence. While for LLDPE Film C4, the offers from a Kuwaiti producer posted an increment of $20/ton from a month earlier. The converter submitted bids at $875/ton, which is $15/ton lower than the initial offer level. To date, the producer is yet to respond to the bids.
The converter also informed that the offers for import US mLLDPE C6 cargoes with cargoes available at Singapore bonded warehouse are available at $1,170/ton on LC at sight, CIF Indonesia Main Port basis. In the domestic market, the converter received offers for localized HDPE Film and LLDPE Film C4 cargoes from a Thai PE producer at IDR14,250,000/ton ($977/ton), which is deemed as the lowest offers the company got from the domestic suppliers. Offers are on cash, FD Indonesia basis, and excluding 10% VAT. Looking ahead, the converter opined to SSESSMENTS.COM that market outlook is rather pessimistic since the demand for finished products remains weak.
