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WeeklySSESSMENTS: Indonesia PP Prices Week Starting May 11


Unreleased BMDTP Hindered Indonesian Buyers From Procuring Import PP Cargoes

  • Leading Indonesian polyolefins producer adjusted local PP prices twice this week
  • No deals concluded for import cargoes so far
  • PP demand will take some time to recover

Indonesian market players told SSESSMENTS.COM that as the government has not released the BMDTP facility (Customs Duty Borne by Government), import PP offers, especially Middle Eastern cargoes are deemed unworkable. According to a global trading house, import PP Homo Raffia of Middle East origin to Indonesia are available at $830/ton on LC at sight, CIF Indonesia main port basis. However, buyers showed a cold response citing the workable level should be between $740-745/ton on the same payment and delivery term. As the buyers’ buy ideas were deemed too low, the global trading house decided to move all the allocation to the Vietnam market. For Southeast Asian cargoes, June shipment offers for Malaysian PP cargoes to Indonesia edged down by $20/ton as compared to May shipment. 

In the local market, the leading Indonesian polyolefins producer has adjusted the offers twice this week. On May 11, offers surfaced with an increase of IDR210,000/ton ($14/ton) for PP Homo Film and IDR110,000/ton ($7/ton) for PP Homo Raffia. However, within a day interval, the producer made further upward price adjustments. On the second price list, SSESSMENTS.COM noted that PP Homo Film and PP Homo Raffia prices increased by IDR150,000/ton ($10/ton) while PP Random Copolymer Injection moved up between IDR150,000-160,000/ton ($10-11/ton). Market talks have it that the producer is having production glitch at the PP plant which led to upward price correction.

Demand for all grades of PP resins remains subdued as demand for the end products have not shown any significant improvement even though some cities have lifted the large-scale social restrictions (PSBB). For the finished products, ongoing demand only reported for woven bags for rice, animal feed, and manure packaging. On the supply front, no significant issues reported by Indonesian market participants to SSESSMENTS.COM.

Looking ahead, the majority of Indonesian market players stated a bearish outlook for the local PP market. Though the large-scale social restrictions in most of the cities in Indonesia are designed to be lifted at the end of May, players are pessimistic that demand will recover soon after that, as stated to SSESSMENTS.COM

Click below to view related stories and content on Indonesia PP:

WeeklySSESSMENTS: Indonesia PP Prices W/C May 4

NewsSSESSMENTS: Malaysian Producer Applied Various Pricing Strategies For June Shipment To Southeast Asian Countries

NewsSSESSMENTS: Leading Indonesian Polyolefins Producer Announces Second Price List Week 20, May 12

Local/localized PP offers on FD Indonesia basis, all excluding 10% VAT

OriginProductTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaPP Block CopolymerPrice List14,480,000972Cash In Advance
IndonesiaPP Homo FilmPrice List14,580,000978Cash In Advance
IndonesiaPP Homo InjectionOffer Given13,500,000906Cash In Advance
IndonesiaPP Homo InjectionOffer Received13,500,00090630 Days Credit Term
IndonesiaPP Homo InjectionPrice List13,590,000912Cash In Advance
IndonesiaPP Homo InjectionSold13,300,00089230 Days Credit Term
IndonesiaPP Homo RaffiaOffer Given13,500,000906Cash In Advance
IndonesiaPP Homo RaffiaOffer Received13,300,000-13,500,000892-906Cash In Advance
IndonesiaPP Homo RaffiaPrice List13,590,000912Cash In Advance
IndonesiaPP Homo RaffiaBuy Idea12,500,000-12,600,000839-845Cash In Advance
IndonesiaPP Homo RaffiaPurchased13,600,000913Cash In Advance
Southeast AsiaPP Homo RaffiaOffer Received13,700,000-13,800,000919-92630 Days Credit Term
IndonesiaPP Random Copolymer InjectionPrice List16,070,000-16,550,0001,078-1,110Cash In Advance

Import PP offers on LC at sight, CIF Indonesia Main Port basis

OriginProductTransaction TypeOffers (USD/ton)
Southeast AsiaPP Block CopolymerPrice List900
Far East AsiaPP Block CopolymerOffer Given860
Southeast AsiaPP Homo FilmPrice List880
Southeast AsiaPP Homo InjectionPrice List850
Middle EastPP Homo RaffiaOffer Given830
Middle EastPP Homo RaffiaOffer Received820
Middle EastPP Homo RaffiaBuy Idea740-800
Southeast AsiaPP Homo RaffiaOffer Given850
Southeast AsiaPP Homo RaffiaPrice List850
Southeast AsiaPP Homo RaffiaBuy Idea880
Southeast AsiaPP Random Copolymer InjectionPrice List990

Tags: Asia Pacific,English,Indonesia,PP,SEA,Weekly

Published on May 13, 2020 12:25 PM (GMT+8)
Last Updated on May 13, 2020 12:25 PM (GMT+8)