Demand Hampered, Indonesia’s PE Market Needs Supporting Factors To Boost Buying Sentiment
- Local PE offers from the producer and traders moved to a different direction
- Import PE offers captured stable to firmer
- Demand started to slow down due to several factors
As demand was hampered owing to several reasons, Indonesia’s PE market needs supporting factors to boost buying sentiment, SSESSMENTS.COM noted. For the week commencing February 3, the leading Indonesian polyolefins producer initiated a price increment for LLDPE Film C4 by IDR270,000/ton ($20/ton) and maintained HDPE Film offers stable. From the trader, local offers for HDPE Film went down by IDR200,000/ton ($14/ton), while LLDPE Film C4 remained stable. For localized cargoes, Southeast Asian HDPE Film captured at IDR200,000/ton ($14/ton) lower. In the import market, a global trading house voiced out sell idea for US LLDPE Film C4 at $920/ton on LC at sight, CIF Indonesia Main Port basis, or $10/ton higher from last week. While offers for LLDPE Film C4 cargoes of Saudi and Kuwait origins recorded stable. All price changes on a weekly comparison. To date, deals for Singaporean HDPE Blow Moulding closed at $20/ton lower than the initial offer level.
As reported to SSESSMENTS.COM, demand for PE resins in Indonesia is gradually decreasing due to sufficient inventory on some converters’ hand coupled with the economic slowdown following the Coronavirus outbreak. Meanwhile, some buyers refrain from procuring cargoes and expect local PE prices will move further down after knowing some traders have trimmed their offers this week. For the end-products, some converters reported slow sales this week. On the supply side, no significant issues reported at the moment.
Looking ahead, Indonesian market players opined to SSESSMENTS.COM that PE prices would remain stable or even decrease in the near term as there is no supporting factor for firm prices. Likewise, demand might remain soft due to the lack of factors to boost buying sentiment.
Tags: Asia Pacific,English,EN PE INDONESIA WSS,Indonesia,Polyethylene (PE),Southeast Asia,WeeklySSESSMENTS Indonesia PE prices,PE PricesFebruary 6, 2020 1:27 PM