Market sources reported to SSESSMENTS.COM on polymer plant issues in Indonesia. According to the sources, the unexpected shutdown took place in early May and it is affecting one of the Indonesian producers. The affected producer did not confirm any issues at this time, but market players reported that there is an issue affecting the plants. This comes at the time of weak polymer demand in Indonesia.
The alleged issue is with Chandra Asri Petrochemical’s cracker and PE plants. As stated to SSESSMENTS.COM, the company’s HDPE/LLDPE plant with a production capacity of 400,000 tons/year is facing an unexpected shutdown since Monday, May 4. The shutdown of the HDPE/LLDPE plant is expected to last for two weeks. The sources added that the producer has also been facing an unexpected shutdown at its cracker unit between May 2-3. The company’s cracker unit with a capacity of 900,000 tons/year ethylene and 490,000 tons/year propylene was shut due to a technical issue.
This week, the producer skips offering spot LLDPE Film cargoes following the unplanned shutdown of its PE plant. More added, the company will postpone the delivery for contract LLDPE Film cargoes. At the time of publication, details on the duration of the delivery could not be ascertained. Market participants also informed SSESSMENTS.COM that the producer is facing issues at its old HDPE line with a production capacity of 136,000 tons/year. Hence, the estimated delivery time for HDPE Film SF5007 and HDPE Monofilament SM5508 cargoes will be delayed by up to two weeks.
‘’The producer has to shut PE plant in order to manage their inventory. It seems that the company is having inventory pressure for LLDPE. CAP is also still having buffer stock for ethylene and propylene, therefore some plants are still running,’’ a source said to SSESSMENTS.COM. At the time of writing, a producer source didn’t respond to requests for comment.
Based on PriceSSESSMENTS collected by SSESSMENTS’ Team and StatsSSESSMENTS, both Indonesian polyethylene producers were seen exporting HDPE and LLDPE cargoes to China in March and April, with very competitive pricing, even though Indonesia is one of the biggest net importers of polyethylene in Southeast Asia.
RumourSSESSMENTS are the stories and information that market players heard and asked SSESSMENTS’ Team to Verify. Often, this information is correct, and sometimes incorrect, something we conclude after the full verification process. However, while waiting for the complete verification process to complete, we wish our customers to be aware of all the stories and rumors in the market. The status for all RumourSSESSMENTS will be updated upon the verification process when the regular SSESSMENTS sections will be updated with the verified information as well.
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Tags: Asia Pacific,English,Freemium,Indonesia,News,PE,SEA
Published on May 5, 2020 2:32 PM (GMT+8)Last Updated on October 1, 2020 4:55 PM (GMT+8)
