Indonesia’s largest local trading house informed SSESSMENTS.COM that this week, the company adjusted up local and localized PE and PP offers and managed to sell some volume amid the supply issue. As compared to last week, offers for local and localized Southeast Asian HDPE Film and LLDPE Film C4 cargoes moved up by IDR600,000/ton ($42/ton) and IDR800,000/ton ($56/ton), respectively. While localized Malaysian LDPE Film offers are available at IDR200,000/ton ($14/ton). Likewise, offers for local and localized Southeast Asian PP Homo Injection and PP Homo Raffia increased by IDR200,000/ton ($14/ton) compared to the same period. As for PP Homo Film, the offers remain unchanged from last week. In the import market, the trader received Philippines LLDPE Film C4 via two different traders at $860/ton and $940/ton, respectively. The second trader was willing to sell at $910/ton, however, the trader remains disincentivised. All import offers on LC at sight, CIF Indonesia Main Port basis.
Demand-wise, as stated by the trader, PE and PP demand in Indonesia remains slow. However, the trader still managed to sell some cargoes this week. On the supply side, the overall PE supply is quite tight, especially for LLDPE Film C4 due to the shutdown at the Chandra Asri Petrochemical’s LLDPE plant with a capacity of 400,000 tons/year. Moreover, market talks have it that the producer has to cut contract allocation around 30-60% from normal volume. Likewise, PP supply is also tight as several producers in Southeast Asia do not have available cargoes, SSESSMENTS.COM noted.
