As contacted by SSESSMENTS.COM, an Indonesian trader highlighted supply issues for local PE. This week the trader has no offers for local LLDPE Film C4 to the spot market as the leading polyolefins producer in the country has not delivered the cargoes yet. The producer has a lot of backlogs for contract customers while the producer’s offers to the spot market are unavailable. Moreover, the producer’s LLDPE plant experienced an unplanned shutdown on Monday afternoon after just restarted in the morning. As the plant had been shut since the beginning of June, it might take longer to restart this time, the trader opined.
SSESSMENTS.COM was further informed that due to supply shortage from the producer for LLDPE Film C4, the contract for the grade in Q3 2020 is cut by 30% from the normal contract. The trader predicts that the producer will not have LLDPE Film C4 available in July. As for HDPE Film, supply is also limited, but the trader still has offers at IDR300,000/ton ($21/ton) higher than last week’s levels. Pertaining to PP, the trader mentioned that supply from the leading Indonesian polyolefins producer is normal and there are no issues on delivery. On the trader’s end, offers for PP Homo Raffia and PP Homo Injection increased by IDR200,000/ton ($14/ton) while offers for PP Homo Film by IDR100,000/ton ($7/ton) as compared to last week.
Local PE, PP offers on cash, FD Indonesia basis (excluding 10% VAT in all terms)
Tags: Asia Pacific,English,Indonesia,News,PE,PP,SEA
Published on June 24, 2020 4:30 PM (GMT+8)
