Pressured by import offers to China, a global trading house is willing to consider Indonesian buyers’ bids for PE and PP, SSESSMENTS.COM was told. Ever since the Financial Minister of Indonesia predicted that Indonesian Rupiah might depreciate up to IDR20,000 per US Dollar, Indonesian buyers have been consistently submitting bids at a very low level. The source stated that the company received bids for Saudi LDPE Film cargoes up to $100/ton lower than the initial offers. Likewise, most buyers submitted bids at $600/ton-level for LLDPE Film C4 of US origin, which is deemed too low at the moment. However, the trader will consider bid at $680/ton with the same payment and shipment term as they are willing to sell between $690-700/ton, taking into account deal levels for import cargoes to China market.
For India origin cargoes, offers at $730/ton on LC at sight, CIF Indonesia main port basis for LLDPE Film C4 were deemed unattractive by the trader. Besides, the trader is unwilling to take the risk as these cargoes are not preferable in Indonesia, coupled with the possibility of delivery disruption amidst the total lockdown in India, SSESSMENTS.COM was told.
For PP Homo Raffia, Middle Eastern cargoes at $830/ton on LC at sight, CIF Indonesia main port basis is totally unworkable. Even though the trader is willing to accept buyers’ bids at $750/ton-level, buyers will be still hesitant to take the cargoes. SSESSMENTS.COM was told that the majority of buyers’ buy idea is at $700/ton-level. For PP Block Copolymer of South Korea origin, the trader provides room for negotiation up to $20/ton lower than the initial offer level.
Demand for PE and PP in Indonesia has severely affected by the fast-spreading Coronavirus outbreak. Besides, the delivery of materials is disrupted. Delivery time in the local market is getting longer than usual. Usually, domestic delivery only takes two days, now it takes five days, as stated to SSESSMENTS.COM.
