Indonesian producer raises PP and PE prices post-Raya break: Navigating exchange rates and maintenance turnarounds
The increment can be primarily attributed to two key factors: the depreciation of the Rupiah and the impending maintenance turnaround at a key local plant.
Following the return from the long Eid al-Fitr holiday after almost 2 weeks, a prominent Indonesian producer has initiated fresh offers for PP and PE in the local market with significant hikes. All materials experienced a sharp increase between IDR 740,000 – IDR 790,000/ton compared to the previous price announcement.
The producer’s latest price list and changes compared to last week are shown in the following table:
|
Material |
Price List as of 22 Apr. 2024 |
USD Equivalent |
W.O.W Changes |
USD Equivalent |
Term |
|
Combined and reported by CommoPlast |
|||||
|
LL film |
IDR 20,620,000 |
$1,272 |
+IDR 740,000 |
+$46 |
FD Jabodetabek |
|
mPE |
IDR 21,790,000 |
$1,345 |
+IDR 770,000 |
+$48 |
FD Jabodetabek |
|
LL inj |
IDR 21,420,000 |
$1,322 |
+IDR 770,000 |
+$48 |
FD Jabodetabek |
|
HD film |
IDR 20,580,000 |
$1,270 |
+IDR 750,000 |
+$46 |
FD Jabodetabek |
|
HD yarn |
IDR 20,430,000 |
$1,261 |
+IDR 750,000 |
+$46 |
FD Jabodetabek |
|
HD blow |
IDR 20,930,000 |
$1,291 |
+IDR 750,000 |
+$46 |
FD Jabodetabek |
|
IPP (PP Film) |
IDR 22,410,000 |
$1,383 |
+IDR 770,000 |
+$48 |
FD Jabodetabek |
|
PPH yarn |
IDR 21,430,000 |
$1,322 |
+IDR 760,000 |
+$47 |
FD Jabodetabek |
|
PPH inj |
IDR 21,430,000 |
$1,322 |
+IDR 760,000 |
+$47 |
FD Jabodetabek |
|
PP thin wall |
IDR 22,000,000 |
$1,358 |
+IDR 770,000 |
+$48 |
FD Jabodetabek |
|
BOPP |
IDR 22,570,000 |
$1,393 |
+IDR 770,000 |
+$48 |
FD Jabodetabek |
|
PP coating |
IDR 22,570,000 |
$1,393 |
+IDR 770,000 |
+$48 |
FD Jabodetabek |
|
PP thermo |
IDR 21,920,000 |
$1,353 |
+IDR 760,000 |
+$47 |
FD Jabodetabek |
|
PPRC |
IDR 23,600,000 |
$1,456 |
+IDR 790,000 |
+$49 |
FD Jabodetabek |
|
PPBC |
IDR 22,470,000 |
$1,387 |
+IDR 770,000 |
+$48 |
FD Jabodetabek |
|
*All prices are excluded of 11% VAT *Exchange Rate: USD 1 = IDR 16,206 *Transportation Cost: West Java = IDR 60,000, Central Java & East Java = IDR 250,000 |
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The increment can be primarily attributed to two key factors: the depreciation of the Rupiah and the impending maintenance turnaround at a key local plant. The Rupiah has experienced headline fluctuations, surpassing 2.5% in comparison to pre-holiday levels, reaching approximately 16,206 to a dollar as of 22 April 2024, as reported by the Oanda Exchange rate.
Furthermore, a local producer is scheduled to undergo maintenance shutdowns on its cracker facilities which will be offline from 07 May 2024 to 20 June 2024.
“We believe the price increment is bound to happen following the challenging exchange rate dynamics. There is a pressing need to monitor whether the end-product market can absorb such a substantial increase,” commented a local player.
Meanwhile, buyers within the PE sector have voiced apprehension, indicating a lack of confidence in customers' ability to absorb the hike. However, with limited options, these buyers may need to adjust the end-product prices accordingly. Failure of the market to accept these adjustments could potentially result in a slowdown in demand.