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WeeklySSESSMENTS: Indonesia PE Prices Week Starting July 6


Implementation Of “New Normal” Has Yet To Leave Significant Impact In Indonesia PE Market

  • Some traders applied different pricing strategy on local PE offers to lure buyers
  • Limited supply for LLDPE Film C4 in the domestic market persists
  • The current PE prices expected to sustain, demand outlook remain blurry

Market sources contacted by SSESSMENTS.COM cited that the implementation of “new normal” has yet to leave a significant impact in Indonesia PE market. On the week starting July 6, the leading Indonesian polyolefins producer decided to maintain a stable offer level for mLLDPE C6, and HDPE grades except for HDPE Blow Moulding that increased by IDR140,000/ton ($9/ton). This week, the producer also raised the prices for LLDPE Film C4 by IDR150,000/ton ($10/ton). However, some players stated that the producer is having no spot offers for LLDPE Film C4 due to backlog orders coupled with production issues. From traders’ end, some maintained the offers stable for local HDPE grades and LLDPE Film C4, some others had to reduce the offers for local HDPE Film and LLDPE Film C4 by IDR150,000/ton ($10/ton) to lure buyers. On the other side, another trader increased the local offers for HDPE Film and LLDPE Film C4 between IDR200,000-300,000/ton ($14-21/ton). For localized cargoes, a Thai PE producer is offering in Rupiah denomination at IDR300,000/ton ($21/ton) higher for HDPE Film and LLDPE Film C4 and at stable level for LDPE Film. From Malaysia, localized offers for LLDPE Film C4 went up by IDR100,000/ton ($7/ton). All price changes on a weekly comparison. Moreover, a converter reported receiving localized LDPE Film cargoes of Malaysia origin at IDR1,450,000/ton ($100/ton) higher than two weeks ago. At the same time, the converter also received localized Malaysian HDPE Film and LLDPE Film at stable levels as compared to the same period. For deals, a manufacturer managed to secure some volume of local LLDPE Film C4 via a trader with deals closed at IDR300,000/ton ($21/ton) lower than the initial offer levels. 

In the import market, a Thai PE producer kept the stable offers for HDPE grades, LDPE Film and LLDPE Film. Likewise, an Indonesian trader received rollover prices for import Saudi and US HDPE Film, as well as Singapore and US LLDPE Film C4 cargoes. All compared to last week’s level. Particularly for US cargoes, the materials are already available in Port Klang, Malaysia, yet, the trader is not considering taking the cargoes since the prices were deemed unacceptable. Whilst a global trading house revealed that US LLDPE Film C4 were hiked by $40/ton. Buyers’ bids at $825/ton, or $45/ton lower than the initial offers were rejected by the trader. From the Philippines, the trader also mentioned that import offers for LLDPE Film C4 surged by $70/ton. Both compared to early June. From the converters' side, one of them reported receiving Singaporean HDPE Blow Moulding at $100/ton higher than last month’s level and Malaysian LDPE Film at $50/ton higher from the same period. Another converter informed that Middle Eastern HDPE Film and US LLDPE Film C4 have emerged with an increment of around $75/ton on month-on-month comparison. The converter decided to purchase both cargoes at $10/ton lower than the initial offers, as told to SSESSMENTS.COM.

As reported to SSESSMENTS.COM, the overall demand for PE resins in Indonesia’s domestic market remains sluggish this week despite the slight improvement on several traders’ end. No significant improvement observed from the implementation of “new normal”. In fact, this week’s sales for PE resins are slightly down from last week as most converters already finished with the replenishment activities. Similar to resins, no improvement seen as well in end-products sales. However, demand for plastic bags is still ongoing despite the regulation to ban single plastic bag usage implemented by the Jakarta government as of July 1. On the supply side, some traders reported having limited supply for all PE grades on their end. Meanwhile, tight supply for LLDPE Film C4 in the domestic market persists even though Chandra Asri Petrochemical (CAP)’s 400,000 tons/year LLDPE plant started running normally since July 1. The reason behind this is because the producer was just able to produce prime grade LLDPE within this week. 

Looking ahead, the majority of market players contacted by SSESSMENTS.COM believe that local and import PE prices will hover or are likely to increase considering low stockpiles in the market and firm ethylene prices. In terms of demand, the outlook remains blurry but players hope that Indonesia’s PE market will gradually become better in-line with “new normal” conditions.

Local/localized PE offers on FD Indonesia basis, excluding 10% VAT in all terms

OriginProductTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaHDPE Blow MouldingOffer Given14,500,000-14,700,0001,005-1,01930 Days Credit Term
IndonesiaHDPE Blow MouldingPrice List14,170,000982Cash In Advance
SingaporeHDPE Blow MouldingOffer Given14,500,000-14,700,0001,005-1,01930 Days Credit Term
IndonesiaHDPE FilmOffer Given14,300,000-14,600,000991-1,012Cash In Advance
IndonesiaHDPE FilmOffer Given14,500,0001,00530 Days Credit Term
IndonesiaHDPE FilmOffer Received14,500,0001,005Cash In Advance
IndonesiaHDPE FilmOffer Received14,500,000-14,700,0001,005-1,01930 Days Credit Term
IndonesiaHDPE FilmPrice List13,870,000-14,700,000961-1,019Cash In Advance
MalaysiaHDPE FilmOffer Received14,500,0001,005Cash In Advance
Southeast AsiaHDPE FilmOffer Received14,800,0001,026Cash In Advance
Southeast AsiaHDPE FilmOffer Received14,600,0001,01230 Days Credit Term
ThailandHDPE FilmOffer Given13,900,000-14,500,000963-1,005Cash In Advance
MalaysiaLDPE FilmOffer Given15,000,0001,04030 Days Credit Term
MalaysiaLDPE FilmOffer Received15,200,0001,053Cash In Advance
MalaysiaLDPE FilmOffer Received15,000,000-15,200,0001,040-1,05330 Days Credit Term
SingaporeLDPE FilmOffer Received14,700,0001,019Cash In Advance
SingaporeLDPE FilmOffer Received15,000,0001,04030 Days Credit Term
ThailandLDPE FilmOffer Given14,200,000-15,000,000984-1,039Cash In Advance
IndonesiaLLDPE Film C4Offer Given14,300,000-14,600,000991-1,012Cash In Advance
IndonesiaLLDPE Film C4Offer Given14,700,000-15,000,0001,019-1,03930 Days Credit Term
IndonesiaLLDPE Film C4Offer Received14,700,000-14,800,0001,019-1,026Cash In Advance
IndonesiaLLDPE Film C4Offer Received14,500,000-14,700,0001,005-1,01930 Days Credit Term
IndonesiaLLDPE Film C4Price List14,110,000-14,310,000978-991Cash In Advance
IndonesiaLLDPE Film C4Purchased14,500,0001,005Cash In Advance
MalaysiaLLDPE Film C4Offer Received14,500,0001,005Cash In Advance
MalaysiaLLDPE Film C4Offer Received14,700,000-15,000,0001,019-1,03930 Days Credit Term
Southeast AsiaLLDPE Film C4Offer Received14,800,0001,026Cash In Advance
Southeast AsiaLLDPE Film C4Offer Received14,800,0001,02630 Days Credit Term
ThailandLLDPE Film C4Offer Given13,900,000-14,800,000963-1,026Cash In Advance
ThailandLLDPE Film C4Offer Received14,200,000984Cash In Advance
ThailandLLDPE Film C4Offer Received14,700,000-14,800,0001,019-1,02630 Days Credit Term
USALLDPE Film C4Offer Received14,400,000998Cash In Advance
IndonesiamLLDPE C6Price List16,150,0001,119Cash In Advance

Import PE offers on LC at sight, CIF Indonesia Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Southeast AsiaHDPE Blow MouldingOffer Given900
Southeast AsiaHDPE Blow MouldingOffer Received970
Southeast AsiaHDPE Blow MouldingPurchased970
Middle EastHDPE FilmOffer Received900
Middle EastHDPE FilmPurchased880-890
Middle EastHDPE FilmSold900
North AmericaHDPE FilmOffer Received920*
Southeast AsiaHDPE FilmOffer Given900
Southeast AsiaHDPE YarnOffer Given900
Southeast AsiaLDPE FilmBid Given950
Southeast AsiaLDPE FilmOffer Given920-980
Southeast AsiaLDPE FilmOffer Received1,010
Southeast AsiaLDPE FilmPurchased1,000
Middle EastLLDPE Film C4Offer Received890
North AmericaLLDPE Film C4Bid Received825
North AmericaLLDPE Film C4Offer Given870
North AmericaLLDPE Film C4Offer Received820-880*
North AmericaLLDPE Film C4Purchased820
Southeast AsiaLLDPE Film C4Offer Given890-920
Southeast AsiaLLDPE Film C4Offer Received900-920
Southeast AsiaLLDPE Film C4Purchased900-910
North AmericamLLDPE C6Offer Received**1,160-1,200
Description: *Shipment from Malaysia **Shipment from Singapore, including custom duty

Tags: Asia Pacific,English,Indonesia,PE,SEA,Weekly

Published on July 9, 2020 12:30 PM (GMT+8)
Last Updated on July 9, 2020 12:30 PM (GMT+8)