Indonesia PE Market Skittish On Concern Over Coronavirus Outbreak, Softer Crude Oil Prices
- Local, localized PE offers moved to a different direction
- Import PE offers recorded stable to firmer
- Demand started to slow down
SSESSMENTS.COM’s data showed that Indonesia PE market skittish on concern over Coronavirus outbreak and softer crude oil prices. In the local market, the leading Indonesian polyolefins producer opted for a price increase of between IDR130,000-140,000/ton ($9-10/ton) for PE across all grades. Likewise, offers for localized Thai PE cargoes across all grades in USD denomination increased by $20/ton on a monthly comparison. Contrastingly, the largest trading house in Indonesia adjusted down the offers for localized HDPE Film, LDPE Film, and LLDPE Film C4 of Southeast Asia origin between IDR500,000-900,000/ton ($37-66/ton) due to sour demand. All offers are on a weekly comparison. In the import market, a Singaporean producer increased offers for HDPE Blow Moulding by $50/ton on a monthly basis. A Thai PE producer adjusted up offers for HDPE Film and LLDPE Film C4 to Indonesia by $10/ton on the high-end level of the price range, while LDPE Film maintained stable from a week earlier. Similarly, a Thai polyolefins producer raised offers for HDPE Film and HDPE Blow Moulding to Indonesia by $40/ton compared to the initial offer level for February shipment.
Despite the uptrend in prices, Indonesia’s PE market is showing signs of ebbing during the week. SSESSMENTS.COM was informed that most buyers started to show resistance toward a high price level on the back of softer crude oil prices and growing concern over the Coronavirus outbreak. As a lethal virus in China spreads, most market participants in Indonesia prefer to adopt a wait-and-see stance before taking the next decision. Besides, demand for end products started to slow down due to a single-use plastics ban in some cities. On the supply side, the availability of PE cargoes in the domestic market is rather tight this week.
For the outlook, Indonesian market players voiced out to SSESSMENTS.COM that local PE prices will continue to move higher in the near term due to relatively tight supply in the market. In contrast, some sources opined that end-products demand would move further down owing to a single-use plastics ban.
Tags: Asia Pacific,EN FREEMIUM,English,EN PE INDONESIA WSS,Freemium,Indonesia,Polyethylene (PE),Southeast Asia,WeeklySSESSMENTS Indonesia PE prices,PE PricesJanuary 30, 2020 3:33 PM