Market sources in Indonesia reported to SSESSMENTS.COM that most PE offers have shifted drastically amid the strengthening Rupiah, while PP cargoes only adjusted slightly as demand for certain grades is striking. This week, traders’ offers for local and localized Southeast Asian PE cargoes across all grades mostly decreased substantially. For HDPE grades, the offers went down between IDR500,000-950,000/ton ($32-60/ton). For LDPE Film, the offers also nosedived between IDR700,000-1,500,000/ton ($44-95/ton). While for LLDPE Film C4, the offers were captured stable to softer between IDR400,000-500,000/ton ($25-32/ton). All price changes are on a weekly comparison. Particularly for localized Thai cargoes, a trader notified that the delivery for HDPE Film and LLDPE Film C4 would be done within 4-6 weeks, while for LDPE Film, the cargoes would be delivered after Eid Al-Fitr.
At the moment, demand for HDPE Blow Moulding reported the healthiest amongst other PE grades as supported by good sales for end-products. Speaking of end-products, demand for LDPE Bubble wrap and HDPE plastic bags are improving as people tend to shop online as of recent. On the production sector, most manufacturers have been running at a reduced rate due to large-scale social restriction since last week. Moreover, SSESSMENTS.COM was told that in order to be able to deliver the cargoes, the trader’s customers need to submit the copy of a permission letter from the government.
For PP cargoes, SSESSMENTS.COM noted that local and localized Southeast Asian offers for PP Homo Injection and PP Homo Raffia were adjusted down between IDR100,000-200,000/ton ($6-13/ton). Meanwhile, local offers for PP Homo Film were mostly stable, and only localized Southeast Asia cargoes that drop by IDR550,000/ton ($35/ton). All price changes are on a weekly interval.
So far, some deals for both local and localized PP cargoes successfully closed at the initial offer levels. Especially for PP Homo Injection, the deals are limited as some houseware manufacturers have been shut due to the big-scale social restriction coupled with slow sales for end-products. In contrast, demand for PP Homo Raffia is improving as some converters have started to replenish their inventory this week. As such, one of the traders stated that their allocation for PP Homo Raffia has been sold out. However, the traders remain worried that demand for PP Homo Raffia will soften again in the upcoming weeks, SSESSMENTS.COM was told.
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Local/localized PE, PP offers on cash, FD Indonesia basis and excluding 10% VAT
| Origin | Product | Transaction Type | Offers (IDR/ton) | Equivalent in USD/ton |
|---|
| Indonesia | HDPE Blow Moulding | Offer Given | 13,400,000 | 852 |
| Southeast Asia | HDPE Blow Moulding | Offer Given | 13,400,000 | 852 |
| Indonesia | HDPE Film | Offer Given | 13,200,000 | 840 |
| Southeast Asia | HDPE Film | Offer Given | 13,200,000 | 840 |
| Thailand | HDPE Film | Offer Given | 13,450,000 | 855 |
| Indonesia | HDPE Injection | Offer Given | 13,400,000 | 852 |
| Southeast Asia | HDPE Injection | Offer Given | 13,400,000 | 852 |
| Southeast Asia | LDPE Film | Offer Given | 15,500,000 | 986 |
| Thailand | LDPE Film | Offer Given | 15,200,000-15,400,000 | 967-980 |
| Indonesia | LLDPE Film C4 | Offer Given | 13,200,000 | 840 |
| Southeast Asia | LLDPE Film C4 | Offer Given | 13,200,000 | 840 |
| Thailand | LLDPE Film C4 | Offer Given | 12,800,000-12,900,000 | 814-820 |
| Indonesia | PP Homo Film | Offer Given | 14,150,000-14,300,000 | 900-910 |
| Indonesia | PP Homo Film | Sold | 14,150,000 | 900 |
| Southeast Asia | PP Homo Film | Offer Given | 14,300,000 | 910 |
| Indonesia | PP Homo Injection | Offer Given | 13,400,000-13,800,000 | 852-878 |
| Southeast Asia | PP Homo Injection | Offer Given | 13,800,000 | 878 |
| Vietnam | PP Homo Injection | Offer Given | 13,400,000-13,500,000 | 852-858 |
| Indonesia | PP Homo Raffia | Offer Given | 13,400,000-13,800,000 | 852-878 |
| Indonesia | PP Homo Raffia | Sold | 13,400,000-13,500,000 | 852-858 |
| Southeast Asia | PP Homo Raffia | Offer Given | 13,800,000 | 878 |
| Vietnam | PP Homo Raffia | Offer Given | 13,400,000-13,500,000 | 852-858 |
| Vietnam | PP Homo Raffia | Sold | 13,400,000-13,500,000 | 852-858 |
Import mLLDPE C6 offers on LC at sight, CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Thailand | Offer Received | 850 |
Tags: Asia Pacific,English,Indonesia,News,PE,PP,SEA
Published on April 16, 2020 6:46 PM (GMT+8)
Last Updated on April 16, 2020 7:10 PM (GMT+8)
