Orders For PE Finished Products Still Ongoing Despite Upcoming Regulation On Plastic Bags In Indonesia
- Local and localized PE offers captured moving in a different direction
- Demand is slightly improving from last week
- Sources expressed a positive outlook in the near term
Market sources informed SSESSMENTS.COM that the orders for PE finished products are still ongoing despite the upcoming regulation on plastic bags in Indonesia. On June 15, the leading Indonesian polyolefins producer announced new HDPE Film and LLDPE Film C4 offers with an upward adjustment of IDR140,000/ton ($10/ton). From the traders’ end, the local offers for HDPE Film were stable while LLDPE Film C4 increased by IDR200,000/ton ($14/ton). However, a distributor decided to lower the offers for local HDPE Film and LLDPE Film C4 cargoes by IDR200,000/ton ($14/ton) and IDR600,000/ton ($42/ton) respectively. For localized cargoes, offers for Southeast Asia HDPE Film cargoes were recorded stable to softer by IDR200,000/ton ($14/ton). Likewise, the offers for localized LDPE Film cargoes of Southeast Asia origin also recorded stable to decrease between IDR500,000-600,000/ton ($35-42/ton). While for localized LLDPE Film C4 cargoes of the same origin, the offers were stable to firmer between IDR100,000-200,000/ton ($7-14/ton). However, some traders decided to apply a downward adjustment of IDR200,000/ton ($14/ton) for localized LLDPE Film C4 cargoes of Southeast Asia origin citing slow demand from their end. All adjustments on a weekly comparison.
From the import market, SSESSMENTS.COM was informed that the offers for import HDPE Film and LLDPE Film C4 cargoes from Thailand increased between $10-50/ton and between $10-40/ton respectively. While for import LDPE Film cargoes of the same origin, the offers were kept stable. All compared to a week earlier. Although the offers for HDPE Film and LLDPE Film C4 cargoes from a Saudi PE producer has not been released yet, customers’ expressed their buy ideas around $790-800/ton. However, traders doubted the offers will be that low since sell ideas for HDPE Film and LLDPE Film C4 from the producer is around $840-850/ton. Additionally, the offers for import HDPE Yarn of Philippines origin are available at $890/ton and the offers are deemed unworkable by the buyers. All offers on LC at sight, CIF Indonesia Main Port basis.
Market sources reported to SSESSMENTS.COM that PE demand in Indonesia has slightly improved compared to last week. Following the “new normal” implemented by the government, customers started to submit orders for finished products as they started to gain confidence. Some converters even stated that the company managed to run the production activity at a full rate. Pertaining to the ban on the single-use plastic bag that was supposed to be implemented on July 1, sources informed that it does not affect demand so far. On the supply side, tightness in the local market persists, especially for LLDPE Film C4 as the leading Indonesian polyolefins producer still has no spot allocation. A converter also reported that the June shipment for import LLDPE Film C4 cargoes from a Singaporean producer will be delayed up to two weeks. While in the production sector, market sources informed that Chandra Asri Petrochemical experienced an unplanned shutdown at its LLDPE plant on June 13. The plant with a capacity of 400,000 tons/year is expected to resume production at the end of June.
Looking ahead, market sources predict that local PE offers will remain firm in the near term as supported by the limited supply in the market. While for the demand, sources expect that it will continue to improve following the “new normal” implementation. Moreover, the current uptrend in PE prices also expected to stimulate buyers to make purchases, SSESSMENTS.COM was told.
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 | Offer Received | 13,400,000* | 943 | Cash In Advance |
| Indonesia | HDPE Blow Moulding | Price List | 13,310,000 | 937 | Cash In Advance |
| Indonesia | HDPE Blow Moulding | Offer Given | 13,900,000-14,000,000 | 978-985 | 30 Days Credit Term |
| Indonesia | HDPE Blow Moulding | Offer Received | 13,600,000* | 957 | 30 Days Credit Term |
| Indonesia | HDPE Blow Moulding | Purchased | 13,800,000 | 971 | 30 Days Credit Term |
| Indonesia | HDPE Film | Offer Given | 13,300,000-13,700,000 | 936-964 | Cash In Advance |
| Indonesia | HDPE Film | Price List | 13,150,000-13,450,000 | 925-943 | Cash In Advance |
| Indonesia | HDPE Film | Offer Received | 13,000,000 | 915 | Cash In Advance |
| Indonesia | HDPE Film | Offer Given | 13,800,000-14,000,000 | 971-985 | 30 Days Credit Term |
| Indonesia | HDPE Film | Purchased | 14,220,000 | 1,001 | 30 Days Credit Term |
| Malaysia | HDPE Film | Offer Received | 13,370,000 | 941 | Cash In Advance |
| Singapore | HDPE Film | Offer Received | 14,000,000 | 985 | 30 Days Credit Term |
| Southeast Asia | HDPE Film | Offer Given | 13,700,000 | 964 | Cash In Advance |
| Southeast Asia | HDPE Film | Offer Received | 13,900,000 | 978 | Cash In Advance |
| Southeast Asia | HDPE Film | Offer Received | 13,800,000-13,950,000 | 971-978 | 30 Days Credit Term |
| Southeast Asia | HDPE Film | Purchased | 13,380,000 | 942 | Cash In Advance |
| Thailand | HDPE Film | Offer Given | 13,000,000 | 915 | Cash In Advance |
| Malaysia | LDPE Film | Offer Given | 13,800,000 | 971 | Cash In Advance |
| Malaysia | LDPE Film | Purchased | 13,600,000 | 957 | Cash In Advance |
| Malaysia | LDPE Film | Offer Received | 13,750,000 | 968 | 30 Days Credit Term |
| Malaysia | LDPE Film | Purchased | 14,000,000 | 985 | 30 Days Credit Term |
| Southeast Asia | LDPE Film | Offer Given | 14,600,000 | 1,027 | 30 Days Credit Term |
| Thailand | LDPE Film | Offer Given | 13,400,000-13,500,000 | 943-950 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Given | 13,300,000-13,500,000 | 936-950 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Received | 13,000,000 | 915 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Price List | 13,040,000 | 918 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Purchased | 12,600,000-13,650,000 | 887-961 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Sold | 12,900,000 | 908 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Given | 13,800,000-14,00,000 | 971-985 | 30 Days Credit Term |
| Indonesia | LLDPE Film C4 | Offer Received | 13,000,000 | 915 | 30 Days Credit Term |
| Malaysia | LLDPE Film C4 | Offer Received | 12,940,000 | 911 | Cash In Advance |
| Malaysia | LLDPE Film C4 | Offer Received | 13,250,000 | 932 | 30 Days Credit Term |
| Southeast Asia | LLDPE Film C4 | Offer Given | 13,500,000 | 950 | Cash In Advance |
| Southeast Asia | LLDPE Film C4 | Offer Received | 12,900,000 | 908 | Cash In Advance |
| Southeast Asia | LLDPE Film C4 | Offer Received | 13,600,000-13,950,000 | 957-978 | 30 Days Credit Term |
| Southeast Asia | LLDPE Film C4 | Purchased | 13,100,000 | 922 | Cash In Advance |
| Thailand | LLDPE Film C4 | Offer Given | 13,000,000 | 915 | Cash In Advance |
| Thailand | LLDPE Film C4 | Offer Received | 13,300,000 | 936 | Cash In Advance |
| Indonesia | mLLDPE C6 | Price List | 14,990,000 | 1,055 | Cash In Advance |
Description: *Offers valid on June 15
Import PE offers on LC at sight, CIF Indonesia Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Southeast Asia | HDPE Blow Moulding | Offer Given | 870 |
| Southeast Asia | HDPE Blow Moulding | Price List | 900 |
| Far East Asia | HDPE Film | Offer Received | 875** |
| Middle East | HDPE Film | Buy Idea | 790-850 |
| Middle East | HDPE Film | Sell Idea | 840-850 |
| Southeast Asia | HDPE Film | Bid Received | 800-820 |
| Southeast Asia | HDPE Film | Offer Given | 870-910 |
| Southeast Asia | HDPE Film | Offer Received | 890-900 |
| Southeast Asia | HDPE Film | Price List | 900 |
| Southeast Asia | HDPE Yarn | Offer Given | 870-890 |
| Southeast Asia | LDPE Film | Offer Given | 910-930 |
| Southeast Asia | LDPE Film | Price List | 970 |
| Middle East | LLDPE Film C4 | Offer Received | 780-800 |
| Middle East | LLDPE Film C4 | Buy Idea | 790-800 |
| Middle East | LLDPE Film C4 | Sell Idea | 840-850 |
| Middle East | LLDPE Film C4 | Purchased | 790-800 |
| Middle East | LLDPE Film C4 | Sold | 800-820 |
| North America | LLDPE Film C4 | Offer Given | 830 |
| North America | LLDPE Film C4 | Purchased | 800* |
| North America | LLDPE Film C4 | Sold | 830* |
| Southeast Asia | LLDPE Film C4 | Bid Given | 800 |
| Southeast Asia | LLDPE Film C4 | Bid Received | 800-820 |
| Southeast Asia | LLDPE Film C4 | Offer Given | 860-890 |
| Southeast Asia | LLDPE Film C4 | Offer Received | 830-900 |
| Southeast Asia | mLLDPE C6 | Offer Given | 900 |
Description: *Shipment from Port Klang, Malaysia **Allocation has been sold out
Tags: Asia Pacific,English,Indonesia,PE,SEA,Weekly
Published on June 18, 2020 2:29 PM (GMT+8)
Last Updated on June 18, 2020 2:29 PM (GMT+8)
