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Local HDPE inj. and b/m prices up on tightness in Indonesia

by ChemOrbis Editorial Team -
  • 18/10/2017 (17:42)
Players in Indonesia’s local PE market report that HDPE supplies remain quite tight in the country, pushing prices for injection and blow moulding grades higher this week. Local HDPE film and pipe prices, on the other hand, were slightly down given a domestic producer’s decrease decision in the midst of weak demand.

At the start of the week, a domestic producer cut its local PE offers for the first time since early July, applying a slight decrease of IDR130,000/ton ($10/ton) for HDPE film and pipe from a week earlier. The producer implemented larger decreases of IDR440,000/ton ($33/ton) for LLDPE injection and IDR870,000/ton ($65/ton) for LLDPE film.

A local distributor commented, “HDPE supplies are very limited as sellers are not willing to sell their cargoes at the current levels, believing that spot ethylene prices in Asia are still too high despite the recent downward corrections. HDPE blow moulding and injection are the tightest ones among other grades. Hence, buyers have to accept whatever level is given by suppliers.”

In Indonesia’s local market, the overall ranges for HDPE injection and blow moulding prices posted gains of around $20-30/ton when compared to last week.

A trader opined, “Overall demand is slow given weak economic conditions in Indonesia. In the PE market, LLDPE is the weakest product nowadays. The HDPE outlook continues to receive support from the ongoing availability issues.”
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