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Tightness pushes local LLDPE film prices to 5-month high in Indonesia

  • 09/07/2018 (03:57)
PE suppliers in Indonesia approached the local market with increases for LLDPE film last week, pointing to supply limitations which have been in place since before the month of Ramadan started. The depreciation of the Indonesian rupiah against the US dollar was cited as another factor pushing local prices up.

Traders reported that a domestic producer lifted its LLDPE film offers by IDR550,000/ton ($38/ton with the recent parity) last week while keeping its offers stable for other PE products. The producer has adopted a stable to firm stance on its LLDPE prices since mid-April.

According to data from ChemOrbis Price Index, the weekly average of local LLDPE film prices on FD Indonesia basis has recently reached its highest level since early February.



A trader operating in Indonesia commented, “Demand remains muted due to the globally softening trend. However, local prices are firm given the weaker rupiah. As for LLDPE, domestic supplies are limited, which is exerting an extra pressure on this grade in particular.”

Many bag manufacturers in the country affirmed that they received higher offers for LLDPE film from local suppliers. A buyer said, “We were already expecting to see increases in LLDPE prices owing to low supply levels. The depreciation of the rupiah has also contributed to the recent price hikes. However, we are struggling to reflect higher costs onto our end product prices. Hence we prefer to stay on the sidelines for now.”
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