Upstream PE Market In Indonesia Enjoying Rising Demand Amid Nonchalant Downstream Market
- Demand picking up in the local market as supply tightening
- Most import HDPE Film and LLDPE Film C4 offers now around $800/ton-level
- Near-term outlook is positive
Upstream players in the Indonesia PE market are enjoying a tremendous trend amid a nonchalantly downstream market. Market sources in Indonesia reported to SSESSMENTS.COM that the leading polyolefins producer in the country has announced a fresh price list for the week commencing June 8, 2020. The producer initiated an upward adjustment of between IDR110,000-130,000/ton ($7-9/ton) on HDPE grades and between IDR70,000-140,000/ton ($4-9/ton) on LLDPE grades. Meanwhile, offers for mLLDPE C6 grade dropped by IDR390,000/ton ($27/ton). All changes compared to the previous price list announced on June 2, 2020. From traders’ side, offers for HDPE Film ranging between IDR12,750,000-13,600,000/ton ($904-964/ton) for HDPE Film, same as LLDPE Film C4. All local/localized offers are on cash, FD Indonesia basis and excluding 10% VAT.
SSESSMENTS.COM pricing database showed that adjustment was applied on import Southeast Asia PE offers to Indonesia market. According to a local converter, import HDPE Blow Moulding offers of Singapore origin to Indonesia were hiked by $100/ton as compared to last month. The latest offers stand at $870/ton. Meanwhile, Thailand origin HDPE grades are now at $850-860/ton, while LDPE Film and LLDPE Film C4 at $910/ton and $840-850/ton respectively. Thailand origin PE cargoes recorded an increase of $50/ton for HDPE Film, $40/ton for LLDPE Film C4, and $10/ton for LDPE Film, all as compared to last week’s offers. All import offers are on LC at sight, CIF Indonesia Main Port basis.
Market players reported to SSESSMENTS.COM that resins demand is healthy this week with inquiries continuing to arrive, while many suppliers not having many cargoes to sell right now. Speaking about downstream production, some converters are still running at a reduced rate to offset sluggish demand for end-products, with exceptions for the hygiene and health-related products which are still enjoying rising demand amid pandemic. Regarding supply, tightness reported as market sources informed that the leading polyolefins producer in the country does not have offers for spot cargoes this week due to low material availability and backlogs.
Considering the firm crude oil and monomer prices coupled with short supply from producers and traders, the pricing outlook for domestic and import markets would remain positive up to the end of June. Talking about demand outlook, converters told SSESSMENTS.COM that end-product’s sales would remain slow as long as physical distancing extends since the biggest consumption of plastic packaging is coming from big cities, but there is possibility for demand to pick-up as shown during the transition phase to the new normal in Jakarta as of recent.
Local/localized PE offers on FD Indonesia basis (excluding 10% VAT in all terms)
| Origin | Product | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | HDPE Blow Moulding | Price List | IDR | 13,170,000 | 934 | Cash In Advance |
| Indonesia | HDPE Blow Moulding | Offer Given | IDR | 13,750,000 | 975 | 14 Days Credit Term |
| Indonesia | HDPE Blow Moulding | Purchased | IDR | 13,800,000 | 978 | 30 Days Credit Term |
| Southeast Asia | HDPE Blow Moulding | Offer Given | IDR | 13,750,000 | 975 | 14 Days Credit Term |
| Indonesia | HDPE Film | Price List | IDR | 13,010,000-13,310,000 | 922-944 | Cash In Advance |
| Indonesia | HDPE Film | Offer Given | IDR | 13,750,000 | 975 | 14 Days Credit Term |
| Indonesia | HDPE Film | Offer Given | IDR | 13,800,000-14,000,000 | 978-993 | 30 Days Credit Term |
| Indonesia | HDPE Film | Offer Received | IDR | 12,750,000-13,600,000 | 904-964 | Cash In Advance |
| Indonesia | HDPE Film | Offer Received | USD | 1,004 | - | Cash In Advance |
| Malaysia | HDPE Film | Purchased | IDR | 13,100,000 | 929 | 30 Days Credit Term |
| Southeast Asia | HDPE Film | Offer Given | IDR | 13,750,000 | 975 | 14 Days Credit Term |
| Southeast Asia | HDPE Film | Offer Received | IDR | 13,250,000-13,900,000 | 939-986 | Cash In Advance |
| Southeast Asia | HDPE Film | Offer Received | IDR | 13,600,000-13,950,000 | 964-989 | 30 Days Credit Term |
| Southeast Asia | HDPE Film | Purchased | IDR | 13,720,000 | 973 | 30 Days Credit Term |
| Thailand | HDPE Film | Offer Given | IDR | 13,200,000-13,400,000 | 936-950 | Cash In Advance |
| Malaysia | LDPE Film | Offer Received | IDR | 13,950,000 | 989 | 30 Days Credit Term |
| Malaysia | LDPE Film | Purchased | IDR | 13,650,000 | 968 | Cash In Advance |
| Southeast Asia | LDPE Film | Offer Received | IDR | 14,440,000 | 1,024 | Cash In Advance |
| Southeast Asia | LDPE Film | Offer Received | USD | 1,025 | - | Cash In Advance |
| Southeast Asia | LDPE Film | Offer Given | IDR | 13,900,000 | 986 | 14 Days Credit Term |
| Thailand | LDPE Film | Offer Given | IDR | 14,000,000 | 993 | Cash In Advance |
| Thailand | LDPE Film | Sold | IDR | 13,900,000 | 986 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Price List | IDR | 12,900,000 | 915 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Given | IDR | 13,300,000 | 943 | 14 Days Credit Term |
| Indonesia | LLDPE Film C4 | Offer Given | IDR | 13,800,000-14,000,000 | 978-993 | 30 Days Credit Term |
| Indonesia | LLDPE Film C4 | Offer Received | IDR | 12,750,000-13,800,000 | 904-978 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Received | IDR | 13,700,000-13,800,000 | 971-978 | 30 Days Credit Term |
| Indonesia | LLDPE Film C4 | Offer Received | USD | 994 | - | Cash In Advance |
| Indonesia | LLDPE Film C4 | Purchased | IDR | 13,200,000 | 936 | 30 Days Credit Term |
| Malaysia | LLDPE Film C4 | Offer Received | IDR | 13,550,000 | 961 | 30 Days Credit Term |
| Southeast Asia | LLDPE Film C4 | Offer Given | IDR | 13,300,000 | 943 | 14 Days Credit Term |
| Southeast Asia | LLDPE Film C4 | Offer Received | IDR | 12,650,000-13,250,000 | 897-939 | Cash In Advance |
| Southeast Asia | LLDPE Film C4 | Offer Received | IDR | 13,600,000-13,950,000 | 964-989 | 30 Days Credit Term |
| Southeast Asia | LLDPE Film C4 | Purchased | IDR | 13,720,000 | 973 | 30 Days Credit Term |
| Thailand | LLDPE Film C4 | Offer Given | IDR | 13,200,000 | 936 | Cash In Advance |
| Indonesia | mLLDPE C6 | Price List | IDR | 14,990,000 | 1,063 | Cash In Advance |
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 Received | 870 |
| Southeast Asia | HDPE Blow Moulding | Offer Given | 850-860 |
| Middle East | HDPE Film | Offer Received | 740-790 |
| Middle East | HDPE Film | Purchased | 740 |
| Middle East | HDPE Film | Sold | 820-830 |
| Southeast Asia | HDPE Film | Offer Received | 820 |
| Southeast Asia | HDPE Film | Offer Given | 850-860 |
| Southeast Asia | HDPE Injection | Offer Given | 850-860 |
| Southeast Asia | HDPE Yarn | Offer Given | 850-860 |
| Southeast Asia | LDPE Film | Offer Given | 910-930 |
| Middle East | LDPE Film | Offer Received | 860-870 |
| Southeast Asia | LDPE Film | Offer Received | 900-960 |
| Middle East | LLDPE Film C4 | Offer Received | 770-840* |
| Middle East | LLDPE Film C4 | Purchased | 770 |
| Middle East | LLDPE Film C4 | Sold | 820-830 |
| Southeast Asia | LLDPE Film C4 | Offer Given | 820-850 |
| Southeast Asia | LLDPE Film C4 | Offer Received | 820-840 |
| Southeast Asia | LLDPE Film C4 | Sold | 820 |
| North America | LLDPE Film C4 | Offer Given | 830 |
| North America | LLDPE Film C4 | Buy Idea | 775-780 |
| North America | LLDPE Film C4 | Sold | 820-830** |
Description: *Shipment from Singapore; **Shipment from Port Klang, Malaysia
Tags: Asia Pacific,English,Indonesia,PE,SEA,Weekly
Published on June 11, 2020 2:29 PM (GMT+8)
Last Updated on June 11, 2020 3:08 PM (GMT+8)
