An Indonesian trader informed SSESSMENTS.COM that market sentiment is expected to improve within this week due to the depreciation of Rupiah. This week, the trader received PE offers from a Thai producer on both FD and CIF basis. However, considering currency exchange, the trader is more interested to take offers on FD basis. While from the trader’s end, offers for localized Thai PE cargoes across all grades remain stable compared to the middle of last week. Bids at IRD1,060,000/ton ($65/ton) lower from the initial offers for HDPE Film cargoes were withdrawn by buyers as they have received this level from another trader. Likewise, offers for local and localized Vietnamese PP cargoes remain unchanged from the level in the middle of last week. Deals for PP Homo Raffia concluded at the same level to the initial offers at IDR14,310,000/ton ($881/ton) on cash, FD Indonesia basis and excluding 10% VAT.
The overall demand at the trader’s end is quite healthy. Further explained, improvement for PE demand was seen since last week. Buyers started to stock up in anticipation of higher prices due to the weakening of Rupiah against US Dollar. However, the delivery for HDPE Injection and LDPE High MI will only be available after Eid Al-Fitr or around May or June, while other grades will be delivered at the end of April. As for PP, demand for PP Homo Raffia and PP Homo Film is quite good due to limited stocks at other traders coupled with the rebound in plastic packaging demand. In contrast, demand for PP Homo Injection is slow in-line with sluggish demand for housewares, the finished products from PP Homo Injection. The trader opined to SSESSMENTS.COM that uptrend in the China market would not have a significant impact on the Indonesia polymer market as the movement in several cities is restricted, especially in Jakarta.
