A Thai PE producer contacted by SSESSMENTS.COM stated that offers in the US Dollar and Indonesian Rupiah had been adjusted in polar opposite as determined by supply-demand factors. This week, the latest offers for import HDPE grades and LLDPE Film C4 from the Thai producer to the Indonesia market went up between $10-20/ton on a weekly comparison. While for LDPE Film, the offers were stable as compared to the same period. At the time of publication, buyers’ bids for both HDPE Film and LLDPE Film C4 were reported at $800-820/ton. Such a level is deemed too low; hence, the producer is unable to accept the bids. Additionally, the producer’s offers for mLLDPE C6 are available at $900/ton for small quantity. All offers are on LC at sight, CIF Indonesia Main Port basis.
On the contrary, SSESSMENTS.COM noted that the producer’s offers in Indonesian Rupiah for HDPE Film, LDPE Film, and LLDPE Film C4 cargoes moved downward. For HDPE Film and LLDPE Film C4, the offers decreased by IDR200,000/ton ($14/ton). While offers for LDPE Film surfaced with a notable reduction of between IDR500,000-600,000/ton ($35-42/ton). All changes on a week-on-week comparison. To date, buyers’ bids at IDR12,500,000/ton ($883/ton)-level for HDPE Film and LLDPE Film C4 cargoes are still under consideration, taking into account Rupiah depreciation and firm feedstock prices.
Currently, the Thai producer is having rather tight supply for HDPE Film and LLDPE Film C4; therefore, the producer decided to raise their offers in the US Dollar denomination for those grades. Meanwhile, the price decrease in the domestic market was made following the weak buying sentiment in Indonesia. Most cargoes including LLDPE Film C4, LDPE Film and mLLDPE C6 scheduled to arrive in Indonesia ports at the end of July, whereas HDPE Film cargoes will arrive in early August. Speaking of allocation, the producer will still give normal volume to the Indonesia market, SSESSMENTS.COM was told.
