Coronavirus Pandemic To Put A Cap On Indonesia PE Market Outlook
- Local and localized prices moved in a mixed direction
- Thai PE producer adjusted LDPE Film and LLDPE Film C4 offers owing to production costs
- Market outlook remains pessimistic
Market sources opined to SSESSMENTS.COM that the Coronavirus pandemic will put a cap on the positive outlook for Indonesia PE market. This week, the leading Indonesian polyolefins producer decided to reduce HDPE Film and HDPE Blow Moulding offers between IDR130,000-140,000/ton ($8.5-9/ton) and by IDR130,000/ton ($8.5/ton) respectively. From the traders’ end, the offers for local HDPE Film cargoes were adjusted down by IDR300,000/ton ($20/ton) while the offers for localized Southeast Asian HDPE Film and HDPE Blow Moulding decreased by IDR100,000/ton ($6.5/ton). For LLDPE Film C4, the leading polyolefins producer reduced offers by IDR290,000/ton ($19/ton). For localized Southeast Asian cargoes, the offers for LDPE Film and LLDPE Film C4 decreased by IDR300,000/ton ($20/ton) and IDR100,000/ton ($6.5/ton) respectively. All compared to last week’s levels. Meanwhile, some traders initiated upward adjustments following an unplanned shutdown at the leading Indonesian polyolefins producer’s plant. Compared to Tuesday level, offers for local and localized Thailand cargoes via traders increased between IDR400,000-420,000/ton ($26-28/ton) for HDPE Film and IDR500,000-530,000/ton ($33-35/ton) for LLDPE Film C4.
From the import market, the offers for HDPE Film, HDPE Blow Moulding, and HDPE Yarn from a Thai PE producer were kept stable on a weekly comparison at $730/ton on LC at sight, CIF Indonesia Main Port basis. While for LDPE Film and LLDPE Film C4, SSESSMENTS.COM noted that the producer increased offers to the Indonesia market by $5/ton from last week following the higher production costs.
In general, PE demand in Indonesia remains sluggish, no significant improvement noted despite production issues at the leading Indonesian polyolefins producer. For finished products, healthy demand is only captured for essential products. While for the converters whose demand is affected by the pandemic, SSESSMENTS.COM was told that the company already halted its production or running at a reduced rate around 50-80% from the normal capacity. Regarding the Eid Al-Fitr holiday, most players will be away from their desk starting from May 16-18 until June 2. On the production side, a source with knowledge of the matter informed that the leading Indonesian polyolefins producer is having an unplanned shutdown at its PE plants and cracker unit. Due to this, delivery for HDPE Film will be delayed around two weeks while for LLDPE Film C4, the delivery will be delayed until an unspecified time. However, the producer has yet to confirm this issue.
Pertaining to the outlook, market sources opined to SSESSMENTS.COM that there is a possibility for PE prices to decrease further as the market situation will remain the same unless the Coronavirus pandemic is over. While other sources prefer to monitor market movement since many uncertainties exist.
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Local/localized PE offers on cash, FD Indonesia basis, excluding 10% VAT in all US terms
| Origin | Product | Transaction Type | Offers (IDR/ton) | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | HDPE Blow Moulding | Offer Given | 12,500,000 | 824 | Cash In Advance |
| Indonesia | HDPE Blow Moulding | Price List | 12,010,000 | 792 | Cash In Advance |
| Indonesia | HDPE Blow Moulding | Offer Given | 12,700,000 | 838 | 30 Days Credit Term |
| Indonesia | HDPE Blow Moulding | Price List | 12,020,000 | 793 | 30 Days Credit Term |
| Singapore | HDPE Blow Moulding | Offer Given | 12,700,000 | 838 | 30 Days Credit Term |
| Southeast Asia | HDPE Blow Moulding | Offer Given | 12,500,000 | 824 | Cash In Advance |
| Indonesia | HDPE Film | Offer Given | 11,600,000-12,000,000 | 765-792 | Cash In Advance |
| Indonesia | HDPE Film | Offer Received | 11,200,000-11,700,000 | 739-772 | Cash In Advance |
| Indonesia | HDPE Film | Price List | 11,620,000-11,930,000 | 766-787 | Cash In Advance |
| Indonesia | HDPE Film | Purchased | 12,360,000 | 815 | Cash In Advance |
| Indonesia | HDPE Film | Offer Given | 12,000,000 | 792 | 30 Days Credit Term |
| Indonesia | HDPE Film | Offer Received | 11,790,000 | 778 | 30 Days Credit Term |
| Southeast Asia | HDPE Film | Offer Given | 12,000,000 | 792 | Cash In Advance |
| Southeast Asia | HDPE Film | Purchased | 11,500,000 | 759 | Cash In Advance |
| Southeast Asia | HDPE Film | Offer Received | 12,000,000-12,180,000 | 792-798 | 30 Days Credit Term |
| Thailand | HDPE Film | Offer Given | 11,220,000-12,000,000 | 740-792 | Cash In Advance |
| Malaysia | LDPE Film | Offer Received | 15,000,000 | 989 | Cash In Advance |
| Southeast Asia | LDPE Film | Offer Given | 14,700,000 | 970 | Cash In Advance |
| Southeast Asia | LDPE Film | Offer Received | 14,700,000 | 970 | 30 Days Credit Term |
| Thailand | LDPE Film | Offer Given | 14,600,000-14,700,000 | 963-970 | Cash In Advance |
| Thailand | LDPE Film | Offer Received | 14,250,000 | 940 | Cash In Advance |
| Thailand | LDPE Film | Bid Received | 14,200,000 | 937 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Given | 11,300,000-12,000,0000 | 745-792 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Bid Given | 10,900,000 | 719 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Received | 11,000,000-12,000,000 | 726-792 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Price List | 11,310,000 | 746 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Purchased | 11,810,000 | 779 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Given | 11,300,000 | 745 | 30 Days Credit Term |
| Indonesia | LLDPE Film C4 | Offer Received | 12,200,000 | 805 | 30 Days Credit Term |
| Malaysia | LLDPE Film C4 | Purchased | 11,000,000-11,300,000 | 726-745 | Cash In Advance |
| Malaysia | LLDPE Film C4 | Purchased | 11,000,000-11,300,000 | 726-745 | 30 Days Credit Term |
| Southeast Asia | LLDPE Film C4 | Offer Given | 11,500,000 | 759 | Cash In Advance |
| Southeast Asia | LLDPE Film C4 | Buy Idea | 10,900,000-11,000,000 | 719-726 | 30 Days Credit Term |
| Southeast Asia | LLDPE Film C4 | Offer Received | 11,200,000-11,590,000 | 739-759 | 30 Days Credit Term |
| Thailand | LLDPE Film C4 | Offer Given | 10,970,000-11,500,000 | 724-759 | Cash In Advance |
| Thailand | LLDPE Film C4 | Bid Given | 10,800,000-11,000,0000 | 712-726 | Cash In Advance |
| Thailand | LLDPE Film C4 | Offer Received | 11,100,000 | 732 | Cash In Advance |
| Indonesia | mLLDPE C6 | Price List | 14,800,000 | 976 | 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 Given | 730 |
| Middle East | HDPE Film | Offer Given | 750-770 |
| Middle East | HDPE Film | Offer Received | 720 |
| Middle East | HDPE Film | Purchased | 720 |
| Southeast Asia | HDPE Film | Offer Given | 730 |
| Southeast Asia | HDPE Yarn | Offer Given | 730 |
| Middle East | LDPE Film | Offer Given | 850 |
| Middle East | LDPE Film | Offer Received | 800 |
| Middle East | LDPE Film | Purchased | 800 |
| Southeast Asia | LDPE Film | Offer Given | 870 |
| Central Asia | LLDPE Film C4 | Offer Received | 680 |
| Middle East | LLDPE Film C4 | Offer Received | 690-720 |
| Middle East | LLDPE Film C4 | Purchased | 690*-720 |
| Middle East | LLDPE Film C4 | Sell Idea | 750 |
| North America | LLDPE Film C4 | Purchased | 660-675 |
| Southeast Asia | LLDPE Film C4 | Offer Given | 735 |
| Southeast Asia | LLDPE Film C4 | Offer Received | 730 |
| Southeast Asia | mLLDPE C6 | Offer Given | 890-900 |
| Southeast Asia | mLLDPE C6 | Offer Received | 900 |
| Southeast Asia | mLLDPE C6 | Purchased | 900 |
Description: *Shipment from Port Klang, Malaysia
Tags: Asia Pacific,English,Indonesia,PE,SEA,Weekly
Published on May 7, 2020 2:54 PM (GMT+8)
Last Updated on May 31, 2020 4:02 PM (GMT+8)
