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NewsSSESSMENTS: Largest Local Trading House In Indonesia Adjusted Local And Localized PE PP Offers, Managed To Sell Cargoes Amid Supply Issue


Indonesia’s largest local trading house informed SSESSMENTS.COM that this week, the company adjusted up local and localized PE and PP offers and managed to sell some volume amid the supply issue. As compared to last week, offers for local and localized Southeast Asian HDPE Film and LLDPE Film C4 cargoes moved up by IDR600,000/ton ($42/ton) and IDR800,000/ton ($56/ton), respectively. While localized Malaysian LDPE Film offers are available at IDR200,000/ton ($14/ton). Likewise, offers for local and localized Southeast Asian PP Homo Injection and PP Homo Raffia increased by IDR200,000/ton ($14/ton) compared to the same period. As for PP Homo Film, the offers remain unchanged from last week. In the import market, the trader received Philippines LLDPE Film C4 via two different traders at $860/ton and $940/ton, respectively. The second trader was willing to sell at $910/ton, however, the trader remains disincentivised. All import offers on LC at sight, CIF Indonesia Main Port basis.

Demand-wise, as stated by the trader, PE and PP demand in Indonesia remains slow. However, the trader still managed to sell some cargoes this week. On the supply side, the overall PE supply is quite tight, especially for LLDPE Film C4 due to the shutdown at the Chandra Asri Petrochemical’s LLDPE plant with a capacity of 400,000 tons/year. Moreover, market talks have it that the producer has to cut contract allocation around 30-60% from normal volume. Likewise, PP supply is also tight as several producers in Southeast Asia do not have available cargoes, SSESSMENTS.COM noted. 

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

OriginProductTransaction TypeOffers (IDR/ton)Equivalent in USD/ton
IndonesiaHDPE Blow MouldingOffer Given14,300,0001,009
Southeast AsiaHDPE Blow MouldingOffer Given14,300,0001,009
IndonesiaHDPE FilmOffer Given14,300,0001,009
Southeast AsiaHDPE FilmOffer Given14,300,0001,009
IndonesiaHDPE InjectionOffer Given14,300,0001,009
Southeast AsiaHDPE InjectionOffer Given14,300,0001,009
MalaysiaLDPE FilmOffer Given14,000,000988
IndonesiaLLDPE Film C4Offer Given14,300,0001,009
Southeast AsiaLLDPE Film C4Offer Given14,300,0001,009
IndonesiaPP Homo FilmOffer Given15,300,0001,079
Southeast AsiaPP Homo FilmOffer Given15,300,0001,079
IndonesiaPP Homo InjectionOffer Given14,700,0001,037
Southeast AsiaPP Homo InjectionOffer Given14,700,0001,037
IndonesiaPP Homo RaffiaOffer Given14,700,0001,037
Southeast AsiaPP Homo RaffiaOffer Given14,700,0001,037

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

OriginProductTransaction TypeOffers (USD/ton)
PhilippinesLLDPE Film C4Offer Received860-940*
Description: *Offers from a different trader

Tags: Asia Pacific,English,Indonesia,News,PE,PP,SEA

Published on June 25, 2020 5:33 PM (GMT+8)
Last Updated on June 26, 2020 1:30 PM (GMT+8)