Market sources in Indonesia reported to SSESSMENTS.COM that sellers in the country are seizing the opportunity to adjust PE offers on the back of an unexpected shutdown at one of the local producer’s plants. On May 4, the leading Indonesian polyolefins producer announced price list to the local market with a reduction of IDR290,000/ton ($19/ton) on LLDPE Film C4 while HDPE Film by IDR140,000/ton ($9.2/ton) compared to a week earlier.
However, news on issues with Chandra Asri Petrochemical’s cracker and PE plants surfaced this week and some sellers decided to use the occasion to raise HDPE Film and LLDPE Film C4 offers. Offers for localized Thai HDPE Film cargoes edged higher by IDR420,000/ton ($27.7/ton) and LLDPE Film C4 of the same origin by IDR530,000/ton ($35/ton) compared to offers announced on Tuesday, May 5. Similarly, a distributor also made the same move on local Indonesian cargoes adjusting up HDPE Film offers by IDR400,000/ton ($26.3/ton) and LLDPE Film C4 by IDR500,000/ton ($33/ton) with effect from Wednesday afternoon, May 6. The distributor told SSESSMENTS.COM the decision on price hikes were made on the back of the shutdown at Chandra Asri Petrochemical’s cracker and PE plants.
Contrary to other sellers, the largest local trading house in Indonesia decided to implement a small price decrease of IDR100,000/ton ($6.6/ton) on HDPE Film and LLDPE Film C4 offers. Market talks have it that deals for LLDPE Film C4 by the trader concluded between IDR10,700,000-11,000,000/ton ($706/ton) while the leading Indonesian polyolefins producer was heard selling the same materials at IDR10,750,000/ton ($709/ton) in order to successfully close the deal, all transaction on cash, FD Indonesia, excluding 10% VAT. For localized Thai LLDPE Film C4 cargoes, a converter of stretch film and plastic packaging informed SSESSMENTS.COM on submitting bids at IDR10,800,000/ton ($712/ton), IDR200,000/ton ($13.1/ton) lower than the initial offers but rejected by the seller.
Looking ahead, despite some sources contacted by SSESSMENTS.COM said there is slight improvement in the market compared to the previous weeks, the majority of players are still hinging on bearish sentiment citing the Coronavirus outbreak as the main reason suppressing overall business activities. Most buyers are sticking to procurement on a need basis only, especially because production is running less than their normal capacity and on top of that, there will be several holidays in Indonesia during May. National holiday in Indonesia takes place on May 7, 21, 22, 24 and 25. Even though the government shifted Eid Al-Fitr collective leave from May 26-29 to December 28-31, some companies have decided to still proceed with holidays from May 21 to 27, while some heard will resume on June 2, after another national holiday on June 1. Ramadan is currently taking place from April 24 to May 23 this year, followed by the Lebaran (Eid Al-Fitr) holiday on May 24 and 25.
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Tags: Asia Pacific,English,Indonesia,News,PE,SEA
Published on May 7, 2020 12:58 PM (GMT+8)Last Updated on May 7, 2020 1:33 PM (GMT+8)
