Sellers In Indonesia Applied Different Pricing Strategies For PE
- Some traders adjusted PE offers in contrast with a local producer’s pricing strategy
- Ban on single-use plastic bags in Jakarta suppresses PE demand
- Market players expressed different opinions on pricing outlook
As reported to SSESSMENTS.COM, sellers in Indonesia applied different pricing strategies for PE. On the week commencing July 20, the leading Indonesian polyolefins producer decided to roll over offers for all PE grades from the previous price list. While a local PE producer announced a fresh price list with an increment of IDR300,000/ton ($20/ton) for all PE grades. The producer provided a discount of IDR75,000-150,000/ton ($5-10/ton) depending on purchasing volume. Follow suit, some traders increased local HDPE Film and LLDPE Film C4 by the same amount. However, some other traders trimmed offers for local and localized Malaysia and Southeast Asia HDPE Film and LLDPE Film C4 cargoes between IDR200,000-310,000/ton ($14-20/ton) and IDR100,000-450,000/ton ($7-31/ton), respectively. As for localized Thai cargoes, a Thai producer increased localized offers for HDPE Film, LDPE Film, and LLDPE Film C4 between IDR300,000-400,000/ton ($20-27/ton) as supported by Rupiah depreciation. All price changes on the week-on-week comparison.
From the import market, a Thai PE producer maintained stable offers for all PE grades from last week’s levels. However, the producer acknowledged that the current offers would not be able to compete with local offers; hence, the company is not aggressively selling this week. Compared to the same period, LDPE Film and LLDPE Film C4 from a Qatari producer dropped by $20/ton, while for HDPE Film, no offers available as the producer has sold out all allocation since the previous week. Meanwhile, offers for Singaporean HDPE Film and HDPE Blow Moulding surged by $70/ton on the monthly comparison. As for US cargoes, PE offers from this origin were scarce this week. However, SSESSMENTS.COM noted that a global trading house expressed sell idea for US LLDPE Film C4 between $855-860/ton on LC at sight, CIF Indonesia Main Port basis. For other grades, offers fo US mLLDPE C6 were available at $900/ton on the same payment and delivery term with shipment from Singapore.
According to market players, the PE market in Indonesia is quiet during the week. Buyers are not in a rush to replenish materials on the back of sufficient inventory and prefer to wait and monitor market movements in anticipation of lower PE prices in the upcoming weeks. Moreover, the ban on single-use plastic bags in Jakarta has dampened PE demand, particularly HDPE Film. On the supply side, as informed to SSESSMENTS.COM, the leading Indonesian polyolefins producer is under pressure to sell PE cargoes due to overstock, yet, some sources mentioned that PE supply in Medan is limited.
Looking ahead, Indonesian market players shared diverse opinions regarding PE pricing outlook. Some believe that with no support from demand, local PE prices will drop in the near term. However, the rest opine that PE prices will remain firm due to Rupiah depreciation, as stated to SSESSMENTS.COM.
Local/localized PE offers on FD Indonesia basis, excluding 10% VAT in all terms
| Origin | Product | Transaction Type | Offers (IDR/ton) | Equivalent In USD/ton | Payment Term |
|---|
| Indonesia | HDPE Blow Moulding | Price List | 14,680,000-15,100,000 | 1,002-1,031 | Cash In Advance |
| Indonesia | HDPE Blow Moulding | Offer Given | 14,500,000 | 990 | Cash In Advance |
| Indonesia | HDPE Blow Moulding | Offer Received | 14,200,000 | 970 | Cash In Advance |
| Southeast Asia | HDPE Blow Moulding | Offer Given | 14,500,000 | 990 | Cash In Advance |
| Indonesia | HDPE Film | Offer Given | 13,800,000-14,100,000 | 942-963 | Cash In Advance |
| Indonesia | HDPE Film | Offer Given | 14,150,000-15,100,000 | 966-1,031 | 30 Days Credit Term |
| Indonesia | HDPE Film | Offer Received | 13,900,000-14,700,000 | 949-1,004 | Cash In Advance |
| Indonesia | HDPE Film | Offer Received | 14,000,000-15,100,000 | 956-1,031 | 30 Days Credit Term |
| Indonesia | HDPE Film | Price List | 14,380,000-15,100,000 | 982-1,031 | Cash In Advance |
| Singapore | HDPE Film | Offer Received | 15,100,000 | 1,031 | 30 Days Credit Term |
| Southeast Asia | HDPE Film | Offer Given | 14,100,000 | 963 | Cash In Advance |
| Southeast Asia | HDPE Film | Offer Received | 13,900,000-14,000,000 | 949-956 | Cash In Advance |
| Southeast Asia | HDPE Film | Offer Received | 14,000,000-14,900,000 | 956-1,018 | 30 Days Credit Term |
| Thailand | HDPE Film | Offer Given | 14,240,000-14,700,000 | 972-1,004 | Cash In Advance |
| Thailand | HDPE Film | Offer Received | 13,900,000 | 949 | Cash In Advance |
| USA | HDPE Film | Offer Received | 15,200,000 | 1,038 | Cash In Advance |
| Malaysia | LDPE Film | Offer Received | 15,000,000-15,100,000 | 1,024-1,031 | Cash In Advance |
| Southeast Asia | LDPE Film | Offer Given | 15,000,000 | 1,024 | Cash In Advance |
| Thailand | LDPE Film | Offer Given | 15,100,000-15,200,000 | 1,031-1,038 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Given | 13,800,000-14,100,000 | 942-963 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Given | 14,150,000-15,100,000 | 966-1,031 | 30 Days Credit Term |
| Indonesia | LLDPE Film C4 | Offer Received | 13,900,000-14,700,000 | 949-1,004 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Received | 13,800,000 | 942 | 30 Days Credit Term |
| Indonesia | LLDPE Film C4 | Price List | 14,470,000-15,300,000 | 988-1,045 | Cash In Advance |
| Malaysia | LLDPE Film C4 | Offer Received | 13,600,000-13,700,000 | 929-936 | Cash In Advance |
| Southeast Asia | LLDPE Film C4 | Offer Given | 14,100,000 | 963 | Cash In Advance |
| Southeast Asia | LLDPE Film C4 | Offer Received | 13,900,000 | 949 | Cash In Advance |
| Southeast Asia | LLDPE Film C4 | Offer Received | 15,000,000*-15,250,000* | 1,024-1,041 | 30 Days Credit Term |
| Southeast Asia | LLDPE Film C4 | Purchased | 13,820,000 | 944 | Cash In Advance |
| Thailand | LLDPE Film C4 | Buy Idea | 13,500,000 | 922 | Cash In Advance |
| Thailand | LLDPE Film C4 | Offer Given | 13,800,000-14,500,000 | 942-990 | Cash In Advance |
| Thailand | LLDPE Film C4 | Offer Received | 13,600,000-13,900,000 | 929-949 | Cash In Advance |
| Thailand | LLDPE Film C4 | Sold | 14,500,000 | 990 | Cash In Advance |
| Indonesia | mLLDPE C6 | Price List | 16,230,000 | 1,108 | Cash In Advance |
Description: *FD Medan basis
Import PE offers on LC at sight, CIF Indonesia Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Southeast Asia | HDPE Blow Moulding | Price List | 960 |
| Southeast Asia | HDPE Blow Moulding | Offer Given | 920-990 |
| Middle East | HDPE Film | Buy Idea | 900 |
| Southeast Asia | HDPE Film | Price List | 960 |
| Southeast Asia | HDPE Film | Offer Given | 920-990 |
| Middle East | LDPE Film | Offer Received | 940-960 |
| Southeast Asia | LDPE Film | Price List | 1,020 |
| Southeast Asia | LDPE Film | Offer Given | 960-1,000 |
| Middle East | LLDPE Film C4 | Offer Given | 880 |
| Middle East | LLDPE Film C4 | Offer Received | 860-900 |
| Middle East | LLDPE Film C4 | Purchased | 860 |
| North America | LLDPE Film C4 | Offer Given | 855-860 |
| North America | LLDPE Film C4 | Offer Received | 850-890 |
| North America | LLDPE Film C4 | Sell Idea | 855-860 |
| Southeast Asia | LLDPE Film C4 | Offer Given | 930-970 |
| Southeast Asia | LLDPE Film C4 | Offer Received | 930 |
| North America | mLLDPE C6 | Offer Received | 900* |
Description: *Shipment from Singapore
Tags: Asia Pacific,English,Indonesia,PE,SEA,Weekly
Published on July 23, 2020 2:34 PM (GMT+8)
Last Updated on July 23, 2020 2:35 PM (GMT+8)
