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MonthlySSESSMENTS: May Indonesia PE Prices

Author: SSESSMENTS

  • Local, import offers were mostly on the same trajectory
  • Sellers’ attempt to stimulate buying activities fell short owing to low purchasing power amid pandemic
  • Pricing outlook remains blurry, to highly depend on the development of demand

In general, offers for PE cargoes in Indonesia market were captured on an uptrend during May; the downward adjustment was only captured in the first week of the month. In this particular week, the leading Indonesian polyolefins producer reduced prices between IDR130,000-140,000/ton ($9-9.6/ton) for HDPE grades and by IDR290,000/ton ($20/ton) for LLDPE Film C4 on a weekly comparison. Likewise, offers for local and localized PE cargoes via traders dropped between IDR100,000-300,000/ton ($7-21/ton) compared to the same period, yet some traders were trying to increase offers between IDR400,000-420,000/ton ($27.5-29/ton) for HDPE Film and IDR500,000-530,000/ton ($34-36.5/ton) for LLDPE Film C4 amid the relatively tight supply in the market due to unplanned shutdown at the leading producer’s PE plants. 

Starting from the second week to the end of May, SSESSMENTS.COM noted that PE offers from local producers and traders captured stable to firmer as supply provided support. Throughout this particular period, price list from the leading Indonesian polyolefins producer recorded a total increase of IDR440,000/ton ($30/ton) for HDPE Blow Moulding, IDR670,000/ton ($46/ton) for HDPE Film, and IDR860,000/ton ($59/ton) for LLDPE Film C4. During the same timeframe, offers for local and localized Southeast Asian PE cargoes from traders also maintained stable to firmer following the local producer’s pricing strategy, with a significant increment recorded on the week commencing May 11. On week-on-week comparison, traders increased offers for HDPE Film and LLDPE Film C4 as much as IDR900,000/ton ($62/ton) and IDR1,100,000/ton ($76/ton), respectively, as the domestic supply for these two grades remained short.

Similar to local offers, import PE offers were also mostly on the uptrend during May. LLDPE Film C4 offers from a Thai PE producer moved higher by $5/ton and $5-20/ton in the first and second week of May, respectively. For HDPE Film, the Thai producer maintained a stable offer level in the first week and made an increase of between $5-20/ton by the second week. For Middle Eastern cargoes, offers for HDPE Film, LDPE Film, and LLDPE Film C4 from a Qatari producer surfaced with an increase of between $10-20/ton on the week commencing May 11. By the week starting May 25, HDPE Film offers from the same producer went up by $10/ton on high-end and $30/ton higher on low-end, LLDPE Film C4 maintained stable on high-end and up by $10/ton on low-end of the price range. All changes were on a week-on-week comparison. For US cargoes, SSESSMENTS.COM was told that offers for LLDPE Film C4 available at Port Klang, Malaysia surged by $60-70/ton on a biweekly comparison.

Demand for PE resins was categorized as sluggish during May. Despite the upward trend in resins prices, buying sentiment remained weak owing to low purchasing power of end-consumers amid the Coronavirus pandemic. According to market sources contacted by SSESSMENTS.COM’s team, most converters in Indonesia were running at a reduced rate of between 50-80% from the normal production capacity due to slow sales. Additionally, market activities in Indonesia were not that active for the second half of May due to the Eid Al-Fitr holiday. On the supply front, the unplanned shutdown at Chandra Asri Petrochemical’s 136,000 tons/year HDPE plant and 400,000 tons/year HDPE/LLDPE swing plant from early up to mid-May, which led to short supply in the domestic market, could not boost sentiment despite sellers’ strategy to increase prices in a bid to stimulate buying activities. 

Entering June, Indonesia PE market outlook remains blurry. Majority of players stated that the pricing outlook would highly depend on the development of demand. For the time being, the firmer crude oil and feedstock prices might be able to maintain prices. However, if the overall demand remains slow amid the Coronavirus pandemic, buyers will show resistance towards high prices, and in the end, would force sellers to meet market expectation on prices.  

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Transactions for local/localized PE between May 1 to May 8 on FD Indonesia basis, all excluding 10% VAT

OriginProductTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaHDPE Blow MouldingOffer Given12,500,000860Cash In Advance
IndonesiaHDPE Blow MouldingOffer Given12,700,00087430 Days Credit Term
IndonesiaHDPE Blow MouldingPrice List12,010,000826Cash In Advance
IndonesiaHDPE Blow MouldingPrice List12,020,00082730 Days Credit Term
SingaporeHDPE Blow MouldingOffer Given12,700,00087430 Days Credit Term
Southeast AsiaHDPE Blow MouldingOffer Given12,500,000860Cash In Advance
IndonesiaHDPE FilmOffer Given11,600,000-12,000,000798-826Cash In Advance
IndonesiaHDPE FilmOffer Given12,000,00082630 Days Credit Term
IndonesiaHDPE FilmOffer Received11,200,000-11,700,000771-805Cash In Advance
IndonesiaHDPE FilmOffer Received11,790,00081130 Days Credit Term
IndonesiaHDPE FilmPrice List11,620,000-11,930,000800-821Cash In Advance
IndonesiaHDPE FilmPurchased11,700,000-12,360,000805-850Cash In Advance
Southeast AsiaHDPE FilmOffer Given12,000,000826Cash In Advance
Southeast AsiaHDPE FilmOffer Received12,600,00086730 Days Credit Term
Southeast AsiaHDPE FilmPurchased11,500,000791Cash In Advance
Southeast AsiaHDPE FilmPurchased12,200,00083930 Days Credit Term
ThailandHDPE FilmOffer Given11,220,000-12,000,000772-826Cash In Advance
ThailandHDPE FilmPurchased12,200,00083930 Days Credit Term
MalaysiaLDPE FilmOffer Received15,000,0001,032Cash In Advance
MalaysiaLDPE FilmOffer Received14,700,000-14,950,0001,011-1,02930 Days Credit Term
MalaysiaLDPE FilmPurchased14,650,0001,00830 Days Credit Term
Southeast AsiaLDPE FilmOffer Given14,700,0001,011Cash In Advance
Southeast AsiaLDPE FilmOffer Received14,700,0001,01130 Days Credit Term
ThailandLDPE FilmBid Received14,200,000977Cash In Advance
ThailandLDPE FilmOffer Given14,600,000-14,700,0001,005-1,011Cash In Advance
ThailandLDPE FilmOffer Received14,250,000980Cash In Advance
IndonesiaLLDPE Film C4Bid Given10,900,000750Cash In Advance
IndonesiaLLDPE Film C4Offer Given11,300,000-12,000,000777-826Cash In Advance
IndonesiaLLDPE Film C4Offer Given11,300,00077730 Days Credit Term
IndonesiaLLDPE Film C4Offer Received11,000,000-12,000,000757-826Cash In Advance
IndonesiaLLDPE Film C4Offer Received12,100,000-12,200,000833-83930 Days Credit Term
IndonesiaLLDPE Film C4Price List11,310,000778Cash In Advance
IndonesiaLLDPE Film C4Purchased11,000,000-11,800,000757-812Cash In Advance
MalaysiaLLDPE Film C4Offer Received11,000,000-11,500,000757-79130 Days Credit Term
MalaysiaLLDPE Film C4Purchased11,000,000-11,300,000757-77730 Days Credit Term
Southeast AsiaLLDPE Film C4Offer Given11,500,000791Cash In Advance
ThailandLLDPE Film C4Bid Given10,800,000-11,000,000743-757Cash In Advance
ThailandLLDPE Film C4Offer Given10,970,000-11,500,000755-791Cash In Advance
ThailandLLDPE Film C4Offer Received11,100,000764Cash In Advance
IndonesiamLLDPE C6Price List14,800,0001,018Cash In Advance

Transactions for import PE between May 1 to May 8 on LC at sight, CIF Indonesia Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Southeast AsiaHDPE Blow MouldingOffer Given730
Middle EastHDPE FilmOffer Given750-770
Middle EastHDPE FilmOffer Received720
Middle EastHDPE FilmPurchased720
Southeast AsiaHDPE FilmOffer Given730
Southeast AsiaHDPE YarnOffer Given730
Middle EastLDPE FilmOffer Given850
Middle EastLDPE FilmOffer Received800
Middle EastLDPE FilmPurchased800-860
Southeast AsiaLDPE FilmOffer Given870-910
Central AsiaLLDPE Film C4Offer Received680
Middle EastLLDPE Film C4Offer Received690-720
Middle EastLLDPE Film C4Purchased690-720
Middle EastLLDPE Film C4Sell Idea750
North AmericaLLDPE Film C4Offer Given710
North AmericaLLDPE Film C4Purchased660-675
Southeast AsiaLLDPE Film C4Offer Given735
Southeast AsiaLLDPE Film C4Offer Received710-730
Southeast AsiaLLDPE Film C4Purchased710
Southeast AsiamLLDPE C6Offer Given890-900
Southeast AsiamLLDPE C6Offer Received900
Southeast AsiamLLDPE C6Purchased900
North AmericamLLDPE C8Offer Received1,000

Transactions for local/localized PE between May 11 to May 15 on FD Indonesia basis, all excluding 10% VAT

OriginProductTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaHDPE Blow MouldingOffer Given12,700,00087414 Days Credit Term
IndonesiaHDPE Blow MouldingPrice List12,010,000-12,700,000826-874Cash In Advance
Southeast AsiaHDPE Blow MouldingOffer Given12,700,00087414 Days Credit Term
ThailandHDPE Blow MouldingOffer Given12,000,000826Cash In Advance
IndonesiaHDPE FilmOffer Given12,900,00088814 Days Credit Term
IndonesiaHDPE FilmOffer Given12,800,00088130 Days Credit Term
IndonesiaHDPE FilmOffer Received11,800,000-12,700,000812-874Cash In Advance
IndonesiaHDPE FilmOffer Received12,180,000-12,950,000838-89130 Days Credit Term
IndonesiaHDPE FilmPrice List11,620,000-12,700,000800-874Cash In Advance
IndonesiaHDPE FilmPurchased12,630,00086930 Days Credit Term
SingaporeHDPE FilmPurchased12,630,000-13,300,000869-91530 Days Credit Term
Southeast AsiaHDPE FilmOffer Given12,900,00088814 Days Credit Term
Southeast AsiaHDPE FilmOffer Received13,150,000-13,400,000905-92230 Days Credit Term
ThailandHDPE FilmOffer Given12,500,000860Cash In Advance
ThailandHDPE YarnOffer Given12,000,000826Cash In Advance
MalaysiaLDPE FilmOffer Given14,300,00098414 Days Credit Term
Southeast AsiaLDPE FilmOffer Given14,500,000-15,000,000998-1,03230 Days Credit Term
ThailandLDPE FilmOffer Given14,900,000-15,500,0001,025-1,066Cash In Advance
IndonesiaLLDPE Film C4Offer Given11,800,000812Cash In Advance
IndonesiaLLDPE Film C4Offer Given12,600,00086714 Days Credit Term
IndonesiaLLDPE Film C4Offer Given12,300,000-12,800,000846-88130 Days Credit Term
IndonesiaLLDPE Film C4Offer Received12,180,000-12,700,000838-87430 Days Credit Term
IndonesiaLLDPE Film C4Price List11,570,000-12,900,000796-888Cash In Advance
IndonesiaLLDPE Film C4Purchased12,360,000850Cash In Advance
IndonesiaLLDPE Film C4Purchased12,630,00086930 Days Credit Term
Southeast AsiaLLDPE Film C4Offer Given12,600,00086714 Days Credit Term
Southeast AsiaLLDPE Film C4Offer Received12,700,000-13,100,000874-90130 Days Credit Term
ThailandLLDPE Film C4Offer Given12,000,000-12,300,000826-846Cash In Advance
IndonesiamLLDPE C6Price List14,780,0001,017Cash In Advance

Transactions for import PE between May 11 to May 15 on LC at sight, CIF Indonesia Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Southeast AsiaHDPE Blow MouldingOffer Given750
Southeast AsiaHDPE Blow MouldingPrice List760
Middle EastHDPE FilmOffer Given750-760
Middle EastHDPE FilmPurchased705-720
Southeast AsiaHDPE FilmOffer Given750-800
Southeast AsiaHDPE FilmOffer Received830
Southeast AsiaHDPE FilmPrice List760
Southeast AsiaHDPE FilmSold750-780
Southeast AsiaHDPE YarnOffer Given750
Middle EastLDPE FilmOffer Given840-850
Southeast AsiaLDPE FilmOffer Given880-940
Southeast AsiaLDPE FilmPrice List920
Middle EastLLDPE Film C4Offer Given750
Middle EastLLDPE Film C4Purchased700
Middle EastLLDPE Film C4Sold745
North AmericaLLDPE Film C4Offer Received750-755
North AmericaLLDPE Film C4Sell Idea750
Southeast AsiaLLDPE Film C4Offer Given740-750
Southeast AsiaLLDPE Film C4Sold740-750
Southeast AsiamLLDPE C6Offer Given900-910
Southeast AsiamLLDPE C6Offer Received890-900
North AmericamLLDPE C8Offer Received960
North AmericamLLDPE C8Purchased960

Transactions for local/localized PE between May 18 to May 22 on FD Indonesia basis, all excluding 10% VAT

OriginProductTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaHDPE Blow MouldingPrice List12,230,000841Cash In Advance
IndonesiaHDPE FilmOffer Given12,800,000881Cash In Advance
IndonesiaHDPE FilmOffer Given12,800,000-13,000,000881-89430 Days Credit Term
IndonesiaHDPE FilmOffer Received12,600,000867Cash In Advance
IndonesiaHDPE FilmOffer Received12,800,00088130 Days Credit Term
IndonesiaHDPE FilmPrice List12,070,000-12,380,000830-852Cash In Advance
SingaporeHDPE FilmOffer Received13,450,00092530 Days Credit Term
ThailandHDPE FilmOffer Given12,500,000860Cash In Advance
Southeast AsiaLDPE FilmOffer Given14,500,000-15,000,000998-1,03230 Days Credit Term
ThailandLDPE FilmOffer Given14,900,0001,025Cash In Advance
IndonesiaLLDPE Film C4Offer Given12,900,000888Cash In Advance
IndonesiaLLDPE Film C4Offer Given12,800,000-13,000,000881-89430 Days Credit Term
IndonesiaLLDPE Film C4Offer Received12,500,000860Cash In Advance
IndonesiaLLDPE Film C4Offer Received11,800,00081230 Days Credit Term
IndonesiaLLDPE Film C4Price List12,170,000837Cash In Advance
IndonesiamLLDPE C6Price List15,080,0001,038Cash In Advance

Transactions for import PE between May 18 to May 22 on LC at sight, CIF Indonesia Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Southeast AsiaHDPE Blow MouldingOffer Given820-840
Middle EastHDPE FilmOffer Given750-770
Middle EastHDPE FilmOffer Received740
North AmericaHDPE FilmPurchased725
Southeast AsiaHDPE FilmOffer Given800-830
Southeast AsiaHDPE FilmOffer Received830
Indian SubcontinentHDPE YarnOffer Given760
Southeast AsiaHDPE YarnOffer Given800
Middle EastLDPE FilmOffer Given850
Middle EastLDPE FilmOffer Received810
Middle EastLDPE FilmPurchased810
Middle EastLDPE FilmSold820-830
Southeast AsiaLDPE FilmOffer Given940
Indian SubcontinentLLDPE Film C4Offer Given730
Indian SubcontinentLLDPE Film C4Purchased710
Indian SubcontinentLLDPE Film C4Sold730
Middle EastLLDPE Film C4Offer Given740-770
Middle EastLLDPE Film C4Purchased720
Middle EastLLDPE Film C4Sold740
North AmericaLLDPE Film C4Bid Received720
North AmericaLLDPE Film C4Offer Given730-740
North AmericaLLDPE Film C4Offer Received720-780

Transactions for local/localized PE between May 25 to May 29 on FD Indonesia basis, all excluding 10% VAT

OriginProductTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaHDPE Blow MouldingOffer Given13,000,000894Cash In Advance
IndonesiaHDPE Blow MouldingPrice List12,450,000857Cash In Advance
Southeast AsiaHDPE Blow MouldingOffer Given13,000,000894Cash In Advance
IndonesiaHDPE FilmOffer Given13,200,000908Cash In Advance
IndonesiaHDPE FilmOffer Given13,200,00090830 Days Credit Term
IndonesiaHDPE FilmPrice List12,290,000-12,600,000846-867Cash In Advance
SingaporeHDPE FilmPurchased12,700,000874Cash In Advance
Southeast AsiaHDPE FilmOffer Given13,200,000908Cash In Advance
ThailandHDPE FilmSold12,400,000-12,500,000853-860Cash In Advance
MalaysiaLDPE FilmOffer Given14,000,000963Cash In Advance
IndonesiaLLDPE Film C4Offer Given12,700,000-13,400,000874-922Cash In Advance
IndonesiaLLDPE Film C4Offer Given12,700,00087430 Days Credit Term
IndonesiaLLDPE Film C4Price List12,170,000837Cash In Advance
IndonesiaLLDPE Film C4Sell Idea12,200,000839Cash In Advance
Southeast AsiaLLDPE Film C4Offer Given12,700,000874Cash In Advance
IndonesiamLLDPE C6Price List15,080,0001,038Cash In Advance

Transactions for import PE between May 25 to May 29 on LC at sight, CIF Indonesia Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Middle EastHDPE FilmOffer Given780
Middle EastLDPE FilmOffer Given840-850
Middle EastLLDPE Film C4Offer Given760-770

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

Published on June 2, 2020 2:23 PM (GMT+8)
Last Updated on June 2, 2020 2:23 PM (GMT+8)