Search posts by:

Search posts by:

Newsletter successfully sent
Failed to send newletter

WeeklySSESSMENTS: Indonesia PP Prices Week Starting June 1

Author: SSESSMENTS

Current PP Price Trend Believed To Prolong To The Upcoming Week, Will Demand In Indonesia Show Improvement?

  • Local and import PP offers move in tandem, number of deals remain scanty
  • PP allocation from the leading polyolefins producer in the country is limited
  • Players expect further price adjustment next week

Indonesian market players believe that the current PP price trend will prolong to the upcoming week but they are questioning whether the demand will show any improvement. This week, SSESSMENTS.COM’s data showed that local and import PP offers in the country recorded on an uptrend. In the local market, the new price list for PP Homopolymer and Copolymer grades from the leading Indonesian polyolefins producer surfaced with an increment of between IDR360,000-380,000/ton ($25-26/ton) on a weekly comparison. Likewise, local offers for PP Homo Injection and PP Homo Raffia via traders went up by IDR300,000/ton ($21/ton) as compared to a fortnight ago. For localized cargoes, some converters received offers for Southeast Asian PP Homo Raffia from a trader at IDR14,100,000/ton ($978/ton) on cash, FD Indonesia basis and excluding 10% VAT, which is considered as high. To date, a trader stated that the number of bids and deals remain scanty as most players have just returned from Eid Al-Fitr holiday; hence, most are probably still examining the latest prices and gauging the market before making procurements. 

In the import market, SSESSMENTS.COM noted that the latest offers for PP Homopolymer grades of Thailand origin have emerged with an increment of $20/ton from last week’s level. For Middle Eastern cargoes, a converter purchased PP Homo Film at $830/ton and decided to skip PP Homo Raffia cargoes offered at $810/ton. For Southeast Asian cargoes, deals for PP Homo Film from a Singaporean producer closed at $880/ton, or $40/ton lower than the initial offer level. All transactions are on LC at sight, CIF Indonesia Main Port basis

In general, demand for PP resins in the domestic market is sluggish this week. Aside from Indonesian market players just back from Eid Al-Fitr holiday, weak demand is also associated with sufficient stock from the converters’ end, citing that most of them might have already replenished their stocks before the holiday. Currently, most converters are still running production at a reduced rate but will gradually increase the capacity in-line with the market improvement in the days to come. For end-products, healthy demand is only seen for food packaging. On the supply front, a converter informed SSESSMENTS.COM that allocation for all PP grades from the leading Indonesian polyolefins producer is quite limited until the end of June as the producer obligated to fulfil the need of their contract customers in China. 

Looking ahead, Indonesian market players contacted by SSESSMENTS.COM believe that the uptrend in PP prices will prolong to the upcoming weeks. Particularly for local offers, some players opined that further upward adjustment of between IDR300,000-500,000/ton ($21-34/ton) may be seen next week considering the supply condition. In terms of demand, no sign of improvement was observed but players hope that the market will be better next week following the easing of social restriction regulations.

Click below to view related stories and content on PP:

WeeklySSESSMENTS: Indonesia PP Prices Week Starting May 18

NewsSSESSMENTS: Leading Indonesian Polyolefins Producer Announces Price List Week 23, June 2

NewsSSESSMENTS: Indonesian Trader Disclosed Reason Behind The Spread Of Local and Localized PP Prices

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 List15,000,0001,041Cash In Advance
IndonesiaPP Homo FilmOffer Received15,300,0001,062Cash In Advance
IndonesiaPP Homo FilmOffer Received15,300,0001,06230 Days Credit Term
IndonesiaPP Homo FilmPrice List15,300,0001,062Cash In Advance
ThailandPP Homo FilmOffer Received15,200,0001,05515 Days Credit Term
ThailandPP Homo FilmPurchased15,200,0001,05515 Days Credit Term
IndonesiaPP Homo InjectionOffer Given14,100,000978Cash In Advance
IndonesiaPP Homo InjectionOffer Received14,800,0001,02730 Days Credit Term
IndonesiaPP Homo InjectionOffer Received14,470,0001,004Cash In Advance
IndonesiaPP Homo InjectionPrice List14,470,0001,004Cash In Advance
IndonesiaPP Homo InjectionPurchased14,500,0001,00630 Days Credit Term
IndonesiaPP Homo RaffiaOffer Given14,100,000978Cash In Advance
IndonesiaPP Homo RaffiaOffer Received13,950,000-14,800,000968-1,027Cash In Advance
IndonesiaPP Homo RaffiaPrice List14,470,0001,004Cash In Advance
Southeast AsiaPP Homo RaffiaOffer Received14,100,000978Cash In Advance
Southeast AsiaPP Homo RaffiaOffer Received14,400,00099930 Days Credit Term
IndonesiaPP Random Copolymer InjectionPrice List16,920,000-17,400,0001,174-1,207Cash In Advance

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

OriginProductTransaction TypeOffers (USD/ton)
Middle EastPP Homo FilmOffer Received830
Middle EastPP Homo FilmPurchased830
Southeast AsiaPP Homo FilmOffer Given950
Southeast AsiaPP Homo FilmOffer Received920
Southeast AsiaPP Homo FilmPurchased880
Southeast AsiaPP Homo InjectionOffer Given950
Middle EastPP Homo RaffiaOffer Received810
Southeast AsiaPP Homo RaffiaOffer Given950

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

Published on June 3, 2020 1:51 PM (GMT+8)
Last Updated on June 3, 2020 1:52 PM (GMT+8)