Indonesia’s PE Market Is Slowing Down Amid Eid Al-Fitr Holiday Mood
- Producers and traders were trying to boost market sentiment
- Demand is slow since players are in holiday mood
- Outlook seems unclear in June
SSESSMENTS.COM noted that this week HDPE prices have increased quite significantly. Traders and suppliers have been trying to increase their offers since two weeks ago on the back of limited availability of materials in the market. The leading Indonesian polyolefins producer’s HDPE Film offers for this week captured at IDR450,000/ton ($30/ton) higher compared to the previous price list announced on May 12. While for LLDPE Film C4 and mLLDPE C6, the producer’s offers were captured higher by IDR600,000/ton ($41/ton) and IDR300,000/ton ($20/ton) respectively as compared to the same period. From traders’ end, one of the Indonesian trading houses’ offers are at IDR12,900,000/ton ($876/ton) for both local and localized Southeast Asian HDPE Film, and IDR12,700,000/ton ($862/ton) for local and localized Southeast Asian LLDPE Film C4. A converter also received offers for Singapore HDPE Film at IDR14,800,000/ton ($1,005/ton) including 10% VAT. This price level is up by IDR500,000/ton ($34/ton) compared to last week. All offers are on 30 days term, FD Indonesia basis.
In the import market, HDPE Blow Moulding and HDPE Yarn of Thailand origin are available at $820/ton and $800/ton respectively. HDPE Blow Moulding offers are reportedly down by $70/ton compared to last month. For HDPE Film, a Thai PE producer offered promotional prices for new grades last week at $780/ton and this week prices have increased to $820/ton citing good market responses. As for the old grades HDPE Film, this week’s offers are at $830/ton, down by $50/ton compared to last month's level. A converter also informed that their company just concluded deals for HDPE Film of US origin at $725/ton, with shipment from Port Klang, Malaysia. US LLDPE Film C4 is offered at $730-740/ton and deemed too high, as such, some customers placed bids at $720/ton but no response from the supplier yet. Another trader even received US LLDPE Film C4 offers at a higher range, at $770-780/ton. These LLDPE Film C4 offers were up by $60-70/ton compared to two weeks ago with the cargoes already in Port Klang. As SSESSMENTS.COM noted, all offers are on LC at sight, CIF Indonesia Main Port basis.
Overall, demand for PE resins is slowing down amid Eid Al-Fitr holiday mood. Some buyers opined that there is too much risk to source the materials from the import market as local market offers are also attractive. Buyers said that even though producers and traders were trying to boost market sentiment, since purchasing power from the end-consumers remains weak and holiday season is near, the impacts are not too visible. On the supply side, the availability of HDPE Film and LLDPE Film C4 cargoes from the leading Indonesian polyolefins producer is reportedly limited.
For the outlook, the overall market is rather slow as market players only work half week, most of them taking holiday starting from Thursday (May 21). Next week, the market is expected to be even more quiet since players will still be on Eid Al-Fitr holiday. Market in early June also remains unclear as the country’s pandemic is still ongoing and demand is very slow. Many manufacturers are also still unsure to start their production in early June or not.
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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 | Price List | 12,230,000 | 830 | Cash In Advance |
| Indonesia | HDPE Film | Offer Given | 12,800,000-13,000,000 | 869-882 | 30 Days Credit Term |
| Indonesia | HDPE Film | Offer Received | 12,800,000-12,900,000 | 869-876 | 30 Days Credit Term |
| Indonesia | HDPE Film | Offer Received | 12,600,000 | 855 | Cash In Advance |
| Indonesia | HDPE Film | Price List | 12,070,000-12,380,000 | 819-840 | Cash In Advance |
| Singapore | HDPE Film | Offer Received | 14,800,000 | 1,005 | 30 Days Credit Term |
| Southeast Asia | HDPE Film | Purchased | 11,650,000 | 791 | Cash In Advance |
| Thailand | HDPE Film | Offer Given | 12,500,000 | 849 | Cash In Advance |
| Indonesia | HDPE Yarn | Price List | 12,380,000 | 840 | Cash In Advance |
| Southeast Asia | LDPE Film | Offer Given | 14,500,000-15,000,000 | 984-1,018 | 30 Days Credit Term |
| Thailand | LDPE Film | Offer Given | 14,900,000 | 1,011 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Price List | 12,170,000 | 826 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Given | 12,800,000-13,000,000 | 869-882 | 30 Days Credit Term |
| Indonesia | LLDPE Film C4 | Offer Received | 12,500,000 | 849 | Cash In Advance |
| Indonesia | LLDPE Film C4 | Offer Received | 11,800,000-12,700,000 | 801-862 | 30 Days Credit Term |
| Indonesia | mLLDPE C6 | Price List | 15,080,000 | 1,024 | 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 | Offer Given | 820-840 |
| Middle East | HDPE Film | Offer Received | 740 |
| Middle East | HDPE Film | Offer Given | 750-770 |
| North America | HDPE Film | Purchased | 725* |
| Southeast Asia | HDPE Film | Offer Given | 800-830 |
| Southeast Asia | HDPE Film | Offer Received | 830 |
| Indian Subcontinent | HDPE Yarn | Offer Given | 760 |
| Southeast Asia | HDPE Yarn | Offer Given | 800 |
| Middle East | LDPE Film | Offer Received | 810 |
| Middle East | LDPE Film | Offer Given | 850 |
| Middle East | LDPE Film | Purchased | 810 |
| Middle East | LDPE Film | Sold | 820-830 |
| Southeast Asia | LDPE Film | Offer Given | 940 |
| Indian Subcontinent | LLDPE Film C4 | Purchased | 710-720 |
| Indian Subcontinent | LLDPE Film C4 | Offer Given | 730-770 |
| Indian Subcontinent | LLDPE Film C4 | Sold | 730-740 |
| North America | LLDPE Film C4 | Offer Given | 730-740 |
| North America | LLDPE Film C4 | Bid Received | 720 |
| North America | LLDPE Film C4 | Offer Received | 720-780 |
Description: *Shipment from Port Klang
Tags: Asia Pacific,English,Indonesia,PE,SEA,Weekly
Published on May 21, 2020 3:52 PM (GMT+8)
Last Updated on May 27, 2020 9:45 AM (GMT+8)
