The largest local trading house in Indonesia disclosed to SSESSMENTS.COM that PE and PP price trend is at a polar opposite with demand trend. The trader even claimed that demand for PE is slower than last week. As for prices, the source has made a significant upward price correction as compared to last week’s level. Offers for local and localized HDPE Film of Southeast Asia origin increased by IDR900,000/ton ($60/ton), IDR200,000/ton ($13/ton) for HDPE Blow Moulding, and LLDPE Film C4 up by IDR1,100,000/ton ($74/ton). The trader further added that the deals for localized LDPE Film of Malaysia origin can be concluded at IDR300,000/ton ($20/ton) lower than the initial offer level for purchases on a cash basis. From the import market, the trader did not receive offers from Thai PE producers this week.
Similar to PE, local and localized Southeast Asian PP prices are also on the uptrend. Compared to last week, the trader has implemented an increment of IDR550,000/ton ($37/ton) on PP Homo Raffia and PP Homo Injection offers. While for PP Homo Film, the offers increased between IDR200,000-500,000/ton ($13-34/ton). Additionally, the trader is willing to provide some room for negotiation for PP Homo Film of between IDR100,000-700,000/ton ($7-47/ton) lower than the initial level for a big volume purchase on a cash basis. In the import market, the source told SSESSMENTS.COM on receiving import PP Homo Raffia offers of Vietnam origin at $850/ton on LC at sight, CIF Indonesia main port basis. The trader has no interest to buy as the offers deemed too high.
Demand for all grades of PE and PP is slow as the Eid Al-Fitr holiday is drawing closer. Most market players in Indonesia will be away from their desks starting from May 21 until May 25. Some parties are even planning to extend the holiday until May 28 or June 2. For the outlook, PE and PP prices in the country are predicted to remain stable in the near term, as stated to SSESSMENTS.COM.
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