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WeeklySSESSMENTS: Indonesia PP Prices Week Starting May 18


Indonesian PP Buyers Delayed Procurement Activities Approaching Eid Al-Fitr Holiday

  • Local and import PP offers stride in a diverse movement
  • Indonesia PP market muted as Eid Al-Fitr holiday is around the corner
  • Demand is expected to remain slow after Eid Al-Fitr holiday and affected local PP prices

Indonesian PP buyers decided to delay procurement activities approaching Eid Al-Fitr holiday as their stocks remain sufficient for productions a month ahead. This week, SSESSMENTS.COM’s data showed that the new price list for PP Homopolymer and Copolymer grades from the leading Indonesian polyolefins producer surfaced with an upward adjustment of between IDR150,000-300,000/ton ($10-20/ton) on a weekly comparison. Likewise, local offers for PP Homo Injection and PP Homo Raffia via traders also went up by IDR500,000/ton ($33/ton) as compared to the same period. At the moment, a converter mentioned that most local traders prefer to skip offering and will only start to give new offers by early June since the Indonesia market will be off next week due to Eid Al-Fitr holiday. 

In the import market, June shipment offers from a Thai polyolefins producer have emerged in the Indonesia market this week. As SSESSMENTS.COM noted, the producer’s offers for PP Homopolymer grades dipped by $20/ton. Whereas for PP Block Copolymer grade, the producer initiated a notable reduction of $80/ton. All compared to May shipment offers. Meanwhile, a trader is planning to raise offers for PP Homo Raffia of Middle East origin by $10/ton on a weekly comparison, with their sell idea at $810/ton. On the other side, a number of converters who received offers for Middle Eastern PP Homo Raffia cargoes lamented that the current offers are too high. For India origin cargoes, a trader is offering PP Homo Raffia at $820/ton, but still not getting any response from buyers yet. Additionally, South Korean PP Block Copolymers are available at $900-930/ton. All offers are on LC at sight, CIF Indonesia Main Port basis. 

In general, Indonesia’s PP market this week is quiet; local offers are scarce and the number of orders is limited. The majority of converters cited that their stocks are currently ample for at least until June productions. Therefore, they decided to postpone procurement activities until June or after the Eid Al-Fitr holiday. Besides, demand for end-products remains sluggish this week. One of the local converters shared with SSESSMENTS.COM that good demand for finished products is mostly coming from food packaging, but the overall sales for converters’ end-products are stumbling since the Coronavirus outbreak. On the supply side, no significant issues reported this week.

In the upcoming week, Indonesia’s PP market will be off for Eid Al-Fitr holiday, SSESSMENTS.COM was told. Coming into June, players are unsure whether the producers and traders will keep their offers firm on the back of the higher propylene prices. In terms of demand, the majority of players opined that it would remain slow in June.

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

WeeklySSESSMeNTS: Indonesia PP Prices Week Starting May 11

NewsSSESSMENTS: Leading Indonesian Polyolefins Producer Announces Price List Week 21, May 18

NewsSSESSMENTS: Global Trading House Shares Current Import PE, PP Offers Of Several Origins To Indonesia, Deals Remain Scarce

NewsSSESSMENTS: Indonesian Trader: Most Foreign Producers Postpone New PP Offers As Eid Al-Fitr Approaching

Local PP offers on FD Indonesia basis (excluding 10% VAT in all terms)

OriginProductTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaPP Block CopolymerPrice List14,630,000989Cash In Advance
IndonesiaPP Homo FilmOffer Received14,500,000-14,700,000980-99330 Days Credit Term
IndonesiaPP Homo FilmPrice List14,730,000995Cash In Advance
IndonesiaPP Homo FilmPurchased13,540,000915Cash In Advance
IndonesiaPP Homo InjectionOffer Given14,000,000946Cash In Advance
IndonesiaPP Homo InjectionOffer Received13,500,000-13,900,000912-93930 Days Credit Term
IndonesiaPP Homo InjectionPrice List13,890,000938Cash In Advance
IndonesiaPP Homo RaffiaOffer Given14,000,000946Cash In Advance
IndonesiaPP Homo RaffiaOffer Received13,890,00093830 Days Credit Term
IndonesiaPP Homo RaffiaPrice List13,890,000938Cash In Advance
IndonesiaPP Random Copolymer InjectionPrice List16,370,000-16,850,0001,106-1,139Cash In Advance

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

OriginProductTransaction TypeOffers (USD/ton)
Far East AsiaPP Block CopolymerOffer Given900-930
Southeast AsiaPP Block CopolymerOffer Given850-900
Southeast AsiaPP Block CopolymerPurchased880
Southeast AsiaPP Block CopolymerSold850
Middle EastPP Homo FilmOffer Received830-840
Southeast AsiaPP Homo FilmOffer Given900
Southeast AsiaPP Homo InjectionOffer Given900
Indian SubcontinentPP Homo RaffiaOffer Given820
Indian SubcontinentPP Homo RaffiaOffer Received800
Middle EastPP Homo RaffiaOffer Given840
Middle EastPP Homo RaffiaOffer Received830
Middle EastPP Homo RaffiaPurchased780
Middle EastPP Homo RaffiaSell Idea810
Southeast AsiaPP Homo RaffiaOffer Given900

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

Published on May 20, 2020 12:27 PM (GMT+8)
Last Updated on May 20, 2020 12:27 PM (GMT+8)