The largest local trading house in Indonesia adjusted its local and localized PE offers to match with the competitor’s price levels, SSESSMENTS.COM was told. On a weekly comparison, the offers for local and localized Southeast Asian HDPE Film and HDPE Blow Moulding cargoes decreased by IDR250,000/ton ($18/ton). Likewise, the offers for local and localized Southeast Asian LLDPE Film C4 also trimmed by IDR700,000/ton ($50/ton) from last week. While for localized LDPE Film cargoes of Southeast Asia origin, the offers decreased by IDR300,000/ton ($21/ton) on a weekly comparison. Contrastingly, the offers for HDPE Injection increased by IDR250,000/ton ($18/ton) compared to the same period. Further added, the offers for local and localized Southeast Asian PP cargoes across all grades were kept stable compared to a week earlier supported by the tight supply in the market. The trader also revealed that there is a possibility for PP cargoes to be concluded below IDR14,000,000/ton-level for a big volume of purchases on cash payment terms.
Regarding the downward adjustment, the trader revealed that it was not due to demand factors; demand is ongoing while supply for PE and PP is relatively tight at the moment. The price decrement made was merely to match with the competitors’ price level, as last week’s offers from the trader were deemed too high by customers. The trader opined to SSESSMENTS.COM that there is a possibility for domestic PE and PP offers to decrease. Since buyers are sourcing cargoes from both the local and import markets, tightness in supply is expected to ease in the near term.
