As informed to SSESSMENTS.COM, an Indonesian converter experienced loss due to the long shipment time for LLDPE Film C6 of US origin. As stated by the converter, around 150 tons of off-grades US LLDPE Film C6 cargoes, which bought in early March at $730/ton is yet to arrive in Indonesia. Usually, shipment for US cargoes will take around two months and the converter opined that once the cargoes arrived, LLDPE Film C6 offers will fall to $600/ton-level. Hence, a loss is unavoidable at the converter’s end. While for other grades, on a weekly comparison, offers for Singaporean mLLDPE C6 decreased by $50/ton. Despite the drastic adjustment, the offers are still deemed unattractive compared to formula prices. As for LLDPE Film C4 cargoes from Saudi producers, the offers are available between $740-750/ton. For Russian LLDPE Film C4, the converter did not proceed with procurements due to long lead-time. As SSESSMENTS.COM noted, all import offers are on LC at sight, CIF Indonesia Main Port basis.
In the domestic market, offers for localized Thai LLDPE Film C4 MI 2 are quite high at $900/ton on cash, FD Indonesia basis and excluding 10% VAT due to the limited supply for this grade. Demand-wise, plastic wrapping and hand sanitizer demand is healthy. The converter received bulk export orders from the US as other exporter countries, such as Malaysia, are on lockdown and China is not fully recovering from the previous shutdown. Hence, the company’s plants are running at full production capacity at the moment, as stated to SSESSMENTS.COM.
