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WeeklySSESSMENTS: Indonesia PE Prices Week Starting May 18

Author: SSESSMENTS

Indonesia’s PE Market Is Slowing Down Amid Eid Al-Fitr Holiday Mood

  • Producers and traders were trying to boost market sentiment
  • Demand is slow since players are in holiday mood
  • Outlook seems unclear in June

SSESSMENTS.COM noted that this week HDPE prices have increased quite significantly. Traders and suppliers have been trying to increase their offers since two weeks ago on the back of limited availability of materials in the market. The leading Indonesian polyolefins producer’s HDPE Film offers for this week captured at IDR450,000/ton ($30/ton) higher compared to the previous price list announced on May 12. While for LLDPE Film C4 and mLLDPE C6, the producer’s offers were captured higher by IDR600,000/ton ($41/ton) and IDR300,000/ton ($20/ton) respectively as compared to the same period. From traders’ end, one of the Indonesian trading houses’ offers are at IDR12,900,000/ton ($876/ton) for both local and localized Southeast Asian HDPE Film, and IDR12,700,000/ton ($862/ton) for local and localized Southeast Asian LLDPE Film C4. A converter also received offers for Singapore HDPE Film at IDR14,800,000/ton ($1,005/ton) including 10% VAT. This price level is up by IDR500,000/ton ($34/ton) compared to last week. All offers are on 30 days term, FD Indonesia basis. 

In the import market, HDPE Blow Moulding and HDPE Yarn of Thailand origin are available at $820/ton and $800/ton respectively. HDPE Blow Moulding offers are reportedly down by $70/ton compared to last month. For HDPE Film, a Thai PE producer offered promotional prices for new grades last week at $780/ton and this week prices have increased to $820/ton citing good market responses. As for the old grades HDPE Film, this week’s offers are at $830/ton, down by $50/ton compared to last month's level. A converter also informed that their company just concluded deals for HDPE Film of US origin at $725/ton, with shipment from Port Klang, Malaysia. US LLDPE Film C4 is offered at $730-740/ton and deemed too high, as such, some customers placed bids at $720/ton but no response from the supplier yet. Another trader even received US LLDPE Film C4 offers at a higher range, at $770-780/ton. These LLDPE Film C4 offers were up by $60-70/ton compared to two weeks ago with the cargoes already in Port Klang. As SSESSMENTS.COM noted, all offers are on LC at sight, CIF Indonesia Main Port basis.

Overall, demand for PE resins is slowing down amid Eid Al-Fitr holiday mood. Some buyers opined that there is too much risk to source the materials from the import market as local market offers are also attractive. Buyers said that even though producers and traders were trying to boost market sentiment, since purchasing power from the end-consumers remains weak and holiday season is near, the impacts are not too visible. On the supply side, the availability of HDPE Film and LLDPE Film C4 cargoes from the leading Indonesian polyolefins producer is reportedly limited.

For the outlook, the overall market is rather slow as market players only work half week, most of them taking holiday starting from Thursday (May 21). Next week, the market is expected to be even more quiet since players will still be on Eid Al-Fitr holiday. Market in early June also remains unclear as the country’s pandemic is still ongoing and demand is very slow. Many manufacturers are also still unsure to start their production in early June or not.

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

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NewsSSESSMENTS: Global Trading House Shares Current Import PE, PP Offers Of Several Origins To Indonesia Deals Remain Scarce

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

OriginProductTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaHDPE Blow MouldingPrice List12,230,000830Cash In Advance
IndonesiaHDPE FilmOffer Given12,800,000-13,000,000869-88230 Days Credit Term
IndonesiaHDPE FilmOffer Received12,800,000-12,900,000869-87630 Days Credit Term
IndonesiaHDPE FilmOffer Received12,600,000855Cash In Advance
IndonesiaHDPE FilmPrice List12,070,000-12,380,000819-840Cash In Advance
SingaporeHDPE FilmOffer Received14,800,0001,00530 Days Credit Term
Southeast AsiaHDPE FilmPurchased11,650,000791Cash In Advance
ThailandHDPE FilmOffer Given12,500,000849Cash In Advance
IndonesiaHDPE YarnPrice List12,380,000840Cash In Advance
Southeast AsiaLDPE FilmOffer Given14,500,000-15,000,000984-1,01830 Days Credit Term
ThailandLDPE FilmOffer Given14,900,0001,011Cash In Advance
IndonesiaLLDPE Film C4Price List12,170,000826Cash In Advance
IndonesiaLLDPE Film C4Offer Given12,800,000-13,000,000869-88230 Days Credit Term
IndonesiaLLDPE Film C4Offer Received12,500,000849Cash In Advance
IndonesiaLLDPE Film C4Offer Received11,800,000-12,700,000801-86230 Days Credit Term
IndonesiamLLDPE C6Price List15,080,0001,024Cash In Advance

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

OriginProductTransaction TypeOffers (USD/ton)
Southeast AsiaHDPE Blow MouldingOffer Given820-840
Middle EastHDPE FilmOffer Received740
Middle EastHDPE FilmOffer Given750-770
North AmericaHDPE FilmPurchased725*
Southeast AsiaHDPE FilmOffer Given800-830
Southeast AsiaHDPE FilmOffer Received830
Indian SubcontinentHDPE YarnOffer Given760
Southeast AsiaHDPE YarnOffer Given800
Middle EastLDPE FilmOffer Received810
Middle EastLDPE FilmOffer Given850
Middle EastLDPE FilmPurchased810
Middle EastLDPE FilmSold820-830
Southeast AsiaLDPE FilmOffer Given940
Indian SubcontinentLLDPE Film C4Purchased710-720
Indian SubcontinentLLDPE Film C4Offer Given730-770
Indian SubcontinentLLDPE Film C4Sold730-740
North AmericaLLDPE Film C4Offer Given730-740
North AmericaLLDPE Film C4Bid Received720
North AmericaLLDPE Film C4Offer Received720-780
Description: *Shipment from Port Klang

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

Published on May 21, 2020 3:52 PM (GMT+8)
Last Updated on May 27, 2020 9:45 AM (GMT+8)