SSESSMENTS.COM data showed that PP cargoes from the leading Indonesian polyolefins producer were concluded at far below the official price list. As reported, an Indonesian converter purchased PP Homo Film from the leading Indonesian polyolefins producer at IDR2,160,000/ton ($132/ton) lower than the official price list released on March 30. However, the converter thinks that such a level is still normal, citing that the producer would not dump prices in the local market. In the import market, deals for Southeast Asian PP Homo Raffia and PP Homo Film concluded at $40-50/ton lower than the initial offer levels.
For PE, the converter purchased local HDPE Injection cargoes at IDR12,000,000 ($733/ton) on cash, FD Indonesia basis and excluding 10% VAT. The converter managed to get a lower level as the cargoes purchased are the old stock. While in the import market, offers for Thai LLDPE Film C4 at $840/ton are deemed too high. The converter submitted a bid at a similar level to formula prices or at $60/ton lower than the initial offer level. However, at the time of publication, no response from the supplier yet. Likewise, offers for Singaporean and Thai LDPE Extrusion cargoes at $980/ton are deemed unattractive. All import offers are on LC at sight, CIF Indonesia Main Port basis, SSESSMENTS.COM noted.
Demand-wise, sales for food packaging products reportedly remain stable so far. However, the converter opined to SSESSMENTS.COM that delivery products will be affected if the government decided to lock down the city as a measure to curb the spread of Coronavirus.
