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WeeklySSESSMENTS: Indonesia PE Prices Week Starting June 1

Author: SSESSMENTS

Indonesia Market Dealing With Shift In PE Prices After Eid Al-Fitr Holiday

  • HDPE grades surpassed IDR13,000,000/ton ($917/ton)-level
  • Converters not actively dealing with latest offers from producers and traders
  • Demand condition casts a shadow on positive pricing outlook 

As SSESSMENTS.COM noted, PE prices in the Indonesia market moved into the new horizon this week after the Eid Al-Fitr holiday. Leading Indonesian polyolefins announced a price list with HDPE Blow Moulding at IDR13,040,000 ($920/ton) while HDPE Film at IDR12,880,000-13,190,000/ton ($908-931/ton). This price recorded an increase of IDR590,000/ton ($41/ton) on week-on-week comparison. Another PE producer released their price list for HDPE Blow Moulding, HDPE Film, and LLDPE Film C4 at IDR13,800,000/ton ($973/ton) with an upward adjustment of IDR1,100,000/ton ($77/ton) as compared to the previous price list announced on May 11.

Market players pointed out that HDPE all grades offered above IDR13,000,000/ton ($917/ton)-level going into mid-week. Quoted by SSESSMENTS.COM, Indonesia’s largest local trading house is offering HDPE Blow Moulding, HDPE Film and LLDPE Film C4 at IDR400,000/ton ($28/ton) higher from offers in early this week. For localized cargoes, traders reported that PE cargoes of Thailand origin are available at IDR14,000,000/ton-level ($987/ton) since last week. Competition is quite fierce in localized cargoes with manufacturers still getting offers of localized HDPE Blow Moulding cargoes of Southeast Asia origin at IDR13,000,000/ton-level ($917/ton). All offers are on cash/credit terms, FD Indonesia basis and excluding 10% VAT.

From the import market, a Thai PE producer offered HDPE Film, HDPE Blow Moulding, and LLDPE Film C4 at $800-810/ton, up between $20-25/ton from last week. Meanwhile, for LDPE Film and mLLDPE C6 cargoes, the producer maintained stable offers from last week at $900/ton. All offers on LC at sight, CIF Indonesia Main Port basis.

Upstream players are catching the momentum after the Eid holiday, increasing their offers to find equilibrium while targeting converters with minimum inventory, SSESSMENTS.COM noted. Thought-provoking circumstances arise when from the side of the converter, the majority report that they have secured considerable inventory before price moving up. Most intend to replenish their inventory based on a hand-to-mouth basis to maintain their cash flow, hence no order for bulk volume. Inventory absorption depends on the downstream production rate, reported ranging from 15-100% depending on the end-product orders handled by converters. Domestic demand for single-use plastic bags is still ongoing healthy, with specific sectors such as fisheries and medical put up order numbers. Speaking about the supply side, local producers reported not offering spot cargoes because of a low level of inventory and bound by contracts to the export market. At the same time, many Southeast Asian producers were or shortly would carry out maintenance at PE plants; tight supply beckoned.

Market players voiced out to SSESSMENTS.COM that local and import PE prices would be firm with slight adjustments. Price may increase within a limited range on the back of supply shortage from producers’ ends, coupled with firm monomers and crude oil prices. However, PE prices would stabilize as a shock response from end-users after the price went up too fast would weaken sentiment.

Click below to view related stories and content on the Indonesia PE market:

NewsSSESSMENTS: The Absence Of Inventory Pressure Encouraged Indonesia’s Largest Local Trading House To Amend Local, Localized PE PP Offers

NewsSSESSMENTS: Local Offers For Certain PE Grades In Indonesia Hovering At Fresh Threshold Level 

NewsSSESSMENTS: Thai PE Producer Revealed Latest Offers To Indonesia Market, Adjustments Spotted For Certain Grades Amid Supply Issues 

WeeklySSESSMENTS: Indonesia PE Prices Week Starting May 18 

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 MouldingPrice List13,040,000-13,800,000920-973Cash In Advance
IndonesiaHDPE Blow MouldingOffer Given14,000,000987Cash In Advance
IndonesiaHDPE Blow MouldingPurchased13,800,00097330 Days Credit Term
Southeast AsiaHDPE Blow MouldingOffer Given14,000,000987Cash In Advance
IndonesiaHDPE FilmPrice List12,880,000-13,800,000908-973Cash In Advance
IndonesiaHDPE FilmOffer Given13,800,000-14,000,000973-978Cash In Advance
IndonesiaHDPE FilmOffer Received12,880,000-13,500,000908-952Cash In Advance
IndonesiaHDPE FilmPurchased13,100,000924Cash In Advance
Southeast AsiaHDPE FilmOffer Given14,000,000987Cash In Advance
Southeast AsiaHDPE FilmOffer Received13,100,000-13,600,000924-95930 Days Credit Term
ThailandHDPE FilmOffer Given12,800,000-12,900,000903-910Cash In Advance
MalaysiaLDPE FilmOffer Given14,200,0001,001Cash In Advance
MalaysiaLDPE FilmOffer Received13,900,000-14,150,000980-99830 Days Credit Term
Southeast AsiaLDPE FilmOffer Received14,800,0001,04430 Days Credit Term
Southeast AsiaLDPE FilmPurchased13,900,000980Cash In Advance
ThailandLDPE FilmOffer Given14,400,0001,016Cash In Advance
ThailandLDPE FilmSold14,200,0001,001Cash In Advance
IndonesiaLLDPE Film C4Price List13,800,000-14,000,000973-987Cash In Advance
IndonesiaLLDPE Film C4Offer Given13,700,000-14,000,000966-987Cash In Advance
IndonesiaLLDPE Film C4Offer Received13,300,000-14,000,000938-987Cash In Advance
IndonesiaLLDPE Film C4Offer Received13,700,000-13,800,000966-97330 Days Credit Term
IndonesiaLLDPE Film C4Purchased13,300,000938Cash In Advance
MalaysiaLLDPE Film C4Offer Received13,150,000-13,400,000927-94530 Days Credit Term
Southeast AsiaLLDPE Film C4Offer Given14,000,000987Cash In Advance
Southeast AsiaLLDPE Film C4Offer Received13,000,000-13,200,000917-931Cash In Advance
Southeast AsiaLLDPE Film C4Offer Received13,300,000-13,400,000938-94530 Days Credit Term
Southeast AsiaLLDPE Film C4Purchased12,630,000891Cash In Advance
ThailandLLDPE Film C4Offer Given12,500,000881Cash In Advance
ThailandLLDPE Film C4Offer Received13,100,000924Cash In Advance
IndonesiamLLDPE C6Price List15,380,0001,085Cash In Advance

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

OriginProductTransaction TypeOffers (USD/ton)
ThailandHDPE Blow MouldingOffer Given800-810
ThailandHDPE FilmOffer Given800-810
ThailandHDPE YarnOffer Given800-810
ThailandLDPE FilmOffer Given900
ThailandLDPE FilmOffer Received900-920
ThailandLLDPE Film C4Offer Given800-810
ThailandLLDPE Film C4Offer Received780-800
USALLDPE Film C4Offer Received750*
SingaporemLLDPE C6Offer Received920
ThailandmLLDPE C6Offer Given900
USAmLLDPE C6Offer Received820
USAmLLDPE C6Purchased820
Description: *Shipment from Singapore

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

Published on June 4, 2020 2:23 PM (GMT+8)
Last Updated on June 4, 2020 5:12 PM (GMT+8)