Localized PE prices have increased significantly, a trader based in Medan, Indonesia informed SSESSMENTS.COM. According to the source, the global trading house has adjusted up the offers for localized LLDPE Film C4 of Thailand origin by IDR800,000/ton ($55/ton) as compared to a fortnight ago. The cargoes will be shipped at the end of August as the allocation for July shipment from the global trading house is no longer available. Citing the relatively stable currency exchange rate, the trader opined, “The notable increases from the global trading house might be due to the limited supply on the producer’s end since the exchange rate of Indonesian Rupiah towards the U.S Dollar remains relatively stable around IDR14,500.”
Looking ahead, the trader foresees that supply for LLDPE Film C4, particularly in Medan will be limited. From the Southeast Asian producers, Malaysia’s PRefChem will only be back on-steam in September while from the Philippines’ JG Summit, the trader has yet to receive offers since several months ago. Added to that, market talks have it that Indonesia’s local trading house will stop selling to Medan. “We are not sure, but market talks have it that the biggest local trading house in Indonesia will stop selling to Medan. The only supplier who holds ample supply is the leading Indonesian polyolefins producer. However, we think that the producer will prioritize resolving backlogs,” as stated to SSESSMENTS.COM.
