An Indonesian trader stated to SSESSMENTS.COM that most buyers prefer local PE cargoes over import due to the bigger risk amid Rupiah depreciation. This week, the trader’s offers for US LLDPE Film C4 remained stable on the high-end level of the price range, but by $10/ton lower than a fortnight ago at the low-end level of the price range. Meanwhile, for Middle Eastern cargoes, the offers for LLDPE Film C4 plunged by $60/ton as compared to the same period. HDPE Film and LLDPE Film C4 from a Saudi producer at $750/ton-level were no longer available as the producer already sold out all allocation to the China market. Citing that most Southeast Asian countries are under lockdown at the moment; hence, the producer swerved to China. For LDPE Film, the Saudi producer has yet to conclude any deals so far.
Even though the trader managed to conclude some deals this week, the overall sales from their side reportedly remain lousy due to some factors including Rupiah depreciation. In the domestic market, most buyers prefer local materials over import as they are unsure how much Rupiah will depreciate further in the days to come. While for some re-exporters, the current level is acceptable since they are receiving payment in US Dollar for sales of end-product in the export market. Further added to SSESSMENTS.COM, the trader did not take Indian LLDPE Film C4 cargoes as the documentation will be difficult amid the lockdown, especially for non-re-exporters customers.
