Indonesia’s PE Market To Be Quieter In The Upcoming Weeks Due To Eid Al-Fitr Holiday
- Local offers for PE across all grades moved into a different direction
- Some converters have started to make procurement due to some reasons
- Domestic market will be quieter due to Eid Al-Fitr holiday
A number of sources voiced out to SSESSMENTS.COM that Indonesia’s PE market is predicted to be quieter in the upcoming weeks due to Eid Al-Fitr holiday. This week, the second price list from the leading Indonesian polyolefins producer for PE cargoes across all grades remains stable compared to the first price list announced on Monday, May 11. Likewise, another PE producer in the country decided to maintain the offers stable for HDPE grades but trimmed the offers for LLDPE Film C4 by IDR500,000/ton ($33/ton) from a fortnight ago. Via the largest local trading house, offers for local and localized Southeast Asian HDPE Film and HDPE Blow Moulding increased by IDR900,000/ton ($60/ton) and IDR200,000/ton ($13/ton), respectively. For LDPE Film, a trader’s offers for local and localized Southeast Asian cargoes captured stable. While for LLDPE Film C4, the offers for local and localized Southeast Asia origin cargoes from a trader surged by IDR1,100,000/ton ($74/ton). All price changes on a weekly comparison.
In the import market, offers for HDPE Film from a Thai PE producer surfaced with an increase of $20/ton. Similarly, the producer also raised the offers for LDPE Film and LLDPE Film C4 by $10/ton and between $5-15/ton, respectively. Additionally, mLLDPE C6 offers from the Thai producer also went up between $10-20/ton. All compared to last week’s levels. The producer further explained that the uptrend was driven by the higher crude oil and ethylene prices coupled with a better sentiment in the Indonesian market. To date, the producer managed to sell HDPE Film and LLDPE Film C4 at the initial offer levels and the shipment will be in mid-June. For Middle Eastern cargoes, offers for HDPE Film and LDPE Film remain stable, whilst offers for LLDPE Film C4 moved higher between $10-20/ton, and the supplier will prioritize the regular customers since their PE allocation is limited. As SSESSMENTS.COM noted, deals for Middle Eastern HDPE Film and LLDPE Film C4 cargoes concluded at $5/ton lower than the initial offer levels. Meanwhile, a global trading house hinted that the upcoming offers for US LLDPE Film C4 will be available at $750/ton, or around $40/ton higher from last week’s offers, owing to the higher production costs.
In general, demand for PE resins remains subdued this week as the Eid Al-Fitr holiday is drawing nearer. However, some buyers have started to make procurement for the post-Eid Al-Fitr holiday production and in anticipation of higher prices in the near future. From the converter’s side, demand for end-products is mostly sluggish except for seal plastic and woven bags, which is still going good at the moment. On the production sector, the leading Indonesian polyolefins producer reportedly still facing production issues this week. SSESSMENTS.COM was told that the producer’s PE plants and cracker unit remain off due to an unplanned shutdown.
For the outlook, the majority of Indonesian market players contacted by SSESSMENTS.COM believe that PE market will be quieter in the upcoming weeks as most of them will be away from their desks for Eid Al-Fitr holidays starting from May 21. In terms of prices, overall PE offers are expected to hover at the current level or might be slightly firmer as more converters will start to make procurement this week, traders opined.
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Local/localized PE offers, FD Indonesia basis, excluding 10% VAT in all terms
| Origin | Product | Transaction Type | Offers (IDR/ton) | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | HDPE Blow Moulding | Offer Given | 12,700,000 | 854 | 14 Days Credit Term |
| Indonesia | HDPE Blow Moulding | Price List | 12,010,000-12,700,000 | 808-854 | Cash In Advance |
| Southeast Asia | HDPE Blow Moulding | Offer Given | 12,700,000 | 854 | 14 Days Credit Term |
| Thailand | HDPE Blow Moulding | Offer Given | 12,000,000 | 807 | Cash In Advance |
| Indonesia | HDPE Film | Offer Given | 12,900,000 | 867 | 14 Days Credit Term |
| Indonesia | HDPE Film | Offer Given | 12,800,000 | 861 | 30 Days Credit Term |
| Indonesia | HDPE Film | Offer Received | 12,180,000-12,950,000 | 819-871 | 30 Days Credit Term |
| Indonesia | HDPE Film | Offer Received | 11,800,000-11,900,000 | 793-800 | Cash In Advance |
| Indonesia | HDPE Film | Price List | 11,620,000-12,700,000 | 781-854 | Cash In Advance |
| Indonesia | HDPE Film | Purchased | 12,630,000 | 849 | 30 Days Credit Term |
| Singapore | HDPE Film | Purchased | 12,630,000 | 849 | 30 Days Credit Term |
| Southeast Asia | HDPE Film | Offer Given | 12,900,000 | 867 | 14 Days Credit Term |
| Southeast Asia | HDPE Film | Offer Received | 13,150,000-13,400,000 | 884-901 | 30 Days Credit Term |
| Thailand | HDPE Film | Offer Given | 12,500,000 | 840 | Cash In Advance |
| Thailand | HDPE Yarn | Offer Given | 12,000,000 | 807 | Cash In Advance |
| Malaysia | LDPE Film | Offer Given | 14,300,000 | 962 | 14 Days Credit Term |
| Southeast Asia | LDPE Film | Offer Given | 14,500,000-15,000,000 | 975-1,009 | 30 Days Credit Term |
| Thailand | LDPE Film | Offer Given | 14,900,000-15,500,000 | 1,002-1,042 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Given | 12,600,000 | 847 | 14 Days Credit Term |
| Indonesia | LLDPE Film C4 | Offer Given | 12,300,000-12,800,000 | 827-861 | 30 Days Credit Term |
| Indonesia | LLDPE Film C4 | Offer Given | 12,500,000-12,600,000 | 840-847 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Received | 12,180,000-12,700,000 | 819-854 | 30 Days Credit Term |
| Indonesia | LLDPE Film C4 | Price List | 11,570,000-12,900,000 | 778-867 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Purchased | 12,630,000 | 849 | 30 Days Credit Term |
| Indonesia | LLDPE Film C4 | Purchased | 12,360,000 | 831 | Cash In Advance |
| Southeast Asia | LLDPE Film C4 | Offer Given | 12,600,000 | 847 | 14 Days Credit Term |
| Southeast Asia | LLDPE Film C4 | Offer Received | 12,700,000-13,100,000 | 854-881 | 30 Days Credit Term |
| Thailand | LLDPE Film C4 | Offer Given | 12,000,000-12,300,000 | 807-827 | Cash In Advance |
| Indonesia | mLLDPE C6 | Price List | 14,780,000 | 994 | Cash In Advance |
Import PE offers on LC at sight, CIF Indonesia Main Port basis
| Origin | Product | Transaction Type | Offers (USD/ton) |
|---|
| Southeast Asia | HDPE Blow Moulding | Price List | 760 |
| Southeast Asia | HDPE Blow Moulding | Offer Given | 750 |
| Middle East | HDPE Film | Purchased | 705-720 |
| Middle East | HDPE Film | Offer Given | 750*-760 |
| Southeast Asia | HDPE Film | Price List | 760 |
| Southeast Asia | HDPE Film | Offer Given | 750-800 |
| Southeast Asia | HDPE Film | Sold | 750 |
| Southeast Asia | HDPE Yarn | Offer Given | 750 |
| Middle East | LDPE Film | Offer Given | 840-850* |
| Southeast Asia | LDPE Film | Price List | 920 |
| Southeast Asia | LDPE Film | Offer Given | 880-940 |
| Middle East | LLDPE Film C4 | Purchased | 700 |
| Middle East | LLDPE Film C4 | Offer Given | 750* |
| Middle East | LLDPE Film C4 | Sold | 745* |
| Southeast Asia | LLDPE Film C4 | Offer Given | 740-750 |
| Southeast Asia | LLDPE Film C4 | Sold | 740-750 |
| North America | LLDPE Film C4 | Offer Received | 750** |
| North America | LLDPE Film C4 | Sell Idea | 750 |
| Southeast Asia | mLLDPE C6 | Offer Received | 890-900 |
| Southeast Asia | mLLDPE C6 | Offer Given | 900-910 |
Description: *Offers for June shipment **Shipment from Port Klang, Malaysia
Tags: Asia Pacific,English,Indonesia,PE,SEA,Weekly
Published on May 14, 2020 1:41 PM (GMT+8)
Last Updated on May 14, 2020 1:44 PM (GMT+8)
