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WeeklySSESSMENTS: Indonesia PP Prices Week Starting July 6

Author: SSESSMENTS

Indonesian Market Players Express Mixed Outlook For PP Prices, Finished Product Demand Shifted Slightly

  • Significant adjustment captured on import PP cargoes of Middle East origin on monthly comparison
  • Finished product demand has slightly picked up
  • Market players express a mixed outlook for PP prices

Indonesian market players voiced out different opinions regarding PP pricing outlook in the near term. As informed to SSESSMENTS.COM, on the week commencing July 6, the leading polyolefins producer in the country decided to roll over PP offers except for PP Homo Film, increased by IDR140,000/ton ($10/ton) compared to the price list announced on July 3. Meanwhile, a distributor adjusted up offers for PP Homo Raffia and PP Homo Injection by IDR400,000/ton ($28/ton), while for PP Homo Film, the offers from the distributor moved up by IDR500,000/ton ($35/ton) compared to last week’s level. From the traders’ end, offers for PP Homo Raffia and PP Homo Injection remained stable from last week citing that PP offers from the company’s end have been firm since a week earlier. Deals for these cargoes concluded at IDR200,000-300,000/ton ($14-21/ton) lower than the initial offers at IDR15,200,000-15,300,000/ton ($1,053-1,060/ton) on 30 Days credit term, FD Indonesia basis and excluding 10% VAT. Another trader increased offers for PP Homo Film by IDR300,000/ton ($21/ton) due to the outage at one of Indonesian PP producers plant.

For imports, offers for PP Homo Injection from a South Korean producer from a global trading house are available at $1,000/ton, no comparison as the producer did not regularly give offers every month. A converter received offers for Emirati PP Homo Raffia and PP Homo Film at $100/ton higher on a monthly comparison and purchased PP Homo Film cargoes at $20/ton lower than the initial offers at $960/ton, while deals for PP Homo Raffia achieved at the same level to the initial offers at $950/ton. On the contrary, Indian and Middle Eastern producers lowered PP Homo raffia decreased by $10/ton compared to last week; as such, a trader in Indonesia decided to slash offers to customers by the same amount. For other grades, SSESSMENTS.COM’s pricing database showed that offers for Singaporean and South Korean PP Block Copolymer remain stable from last week. All offers are on LC at sight, CIF Indonesia Main Port basis.

Overall PP demand in Indonesia remains on a soft note this week. Converters and manufacturers prefer to halt procurements or only purchase on a hand-to-mouth basis on the back of sufficient inventory. However, in Medan, demand for PP Homo raffia from a distributor’s end is healthy, as supply in the mentioned city is quite tight. Market sources stated that finished product demand has slightly picked up, especially for the woven bag and food packaging sector. On the supply side, limited PP supply on traders’ end persists, as reported to SSESSMENTS.COM.

Looking ahead, some market players opined that local PP prices would not increase further and might be lower in the near term considering slow finished product demand coupled with no supply issue from local producers’ end. While the rest believed that despite the slow demand, local PP prices will be stable to firmer following the uptrend in feedstock prices, as stated to SSESSMENTS.COM.

Local/localized PP offers on cash, FD Indonesia basis and excluding 10% VAT in all terms

OriginProductTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaPP Block CopolymerPrice List16,020,0001,110Cash In Advance
IndonesiaPP Homo FilmOffer Given16,040,000-16,700,0001,112-1,157Cash In Advance
IndonesiaPP Homo FilmOffer Given15,500,000-15,600,0001,074-1,08130 Days Credit Term
IndonesiaPP Homo FilmOffer Received16,530,0001,146Cash In Advance
IndonesiaPP Homo FilmOffer Received16,500,0001,14315 Days Credit Term
IndonesiaPP Homo FilmOffer Received16,450,0001,14030 Days Credit Term
IndonesiaPP Homo FilmPrice List16,330,0001,132Cash In Advance
MalaysiaPP Homo FilmOffer Received16,300,0001,13015 Days Credit Term
ThailandPP Homo FilmOffer Received15,700,000-16,400,0001,088-1,13715 Days Credit Term
IndonesiaPP Homo InjectionBuy Idea15,000,0001,04030 Days Credit Term
IndonesiaPP Homo InjectionOffer Given15,350,000-15,750,0001,064-1,091Cash In Advance
IndonesiaPP Homo InjectionOffer Given15,350,0001,06430 Days Credit Term
IndonesiaPP Homo InjectionOffer Received15,350,0001,06430 Days Credit Term
IndonesiaPP Homo InjectionPrice List15,350,0001,064Cash In Advance
IndonesiaPP Homo InjectionSell Idea15,500,000-15,800,0001,074-1,09530 Days Credit Term
IndonesiaPP Homo InjectionSold15,200,000-15,300,0001,053-1,06030 Days Credit Term
IndonesiaPP Homo RaffiaOffer Given15,350,000-15,750,0001,064-1,091Cash In Advance
IndonesiaPP Homo RaffiaOffer Given14,800,000-15,350,0001,026-1,06430 Days Credit Term
IndonesiaPP Homo RaffiaOffer Received14,700,000-14,800,0001,019-1,026Cash In Advance
IndonesiaPP Homo RaffiaOffer Received15,700,0001,08830 Days Credit Term
IndonesiaPP Homo RaffiaPrice List15,350,0001,064Cash In Advance
IndonesiaPP Homo RaffiaSell Idea15,500,000-15,800,0001,074-1,09530 Days Credit Term
IndonesiaPP Homo RaffiaSold15,200,000-15,300,0001,053-1,06030 Days Credit Term
Southeast AsiaPP Homo RaffiaOffer Received15,700,0001,08830 Days Credit Term
IndonesiaPP Random Copolymer InjectionPrice List17,810,000-18,280,0001,234-1,267Cash In Advance

Import PP offers on LC at sight, CIF/CFR Indonesia Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Far East AsiaPP Block CopolymerPurchased1,000
Far East AsiaPP Block CopolymerSold1,020
Southeast AsiaPP Block CopolymerBid Received1,000*
Southeast AsiaPP Block CopolymerOffer Given1,020*
Southeast AsiaPP Block CopolymerPurchased1,020
Southeast AsiaPP Block CopolymerSell Idea1,020*
Southeast AsiaPP Block CopolymerSold1,040
Middle EastPP Homo FilmOffer Received980
Middle EastPP Homo FilmPurchased960
Southeast AsiaPP Homo FilmOffer Received960
Southeast AsiaPP Homo FilmPurchased960
Far East AsiaPP Homo InjectionOffer Given1,000
Southeast AsiaPP Homo InjectionOffer Given1,000
Indian SubcontinentPP Homo RaffiaOffer Received925-960
Middle EastPP Homo RaffiaOffer Given940-960
Middle EastPP Homo RaffiaOffer Received950
Middle EastPP Homo RaffiaPurchased920-950
Southeast AsiaPP Homo RaffiaOffer Given1,000
Southeast AsiaPP Homo RaffiaOffer Received980-1,000
Description: *July shipment offers

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

Published on July 8, 2020 1:31 PM (GMT+8)
Last Updated on July 8, 2020 1:31 PM (GMT+8)