Domestic PE prices down revised in Indonesia

26-Mar-10

In Indonesia, domestic PE prices have moved south for the third consecutive week, bringing local offers down to levels last seen at the beginning of 2010, as per Chemorbis. Domestic producers reported reducing their prices by $50/ton for both LLDPE film and HDPE film while also cutting their offers for other HDPE grades by US$40-50/ton, citing softening prices in the import market along with sluggish demand. Distributors in the country complain that demand has not seen much improvement even after producers’ latest price decreases, prompting distributors to agree to additional discounts of ten dollars from the new producer price level.Buyers also complained of sluggish demand for their end products, with most buyers electing to delay their purchases whenever their inventory levels are large enough to permit them to do so. Following producers’ and distributors’ most recent price adjustments, domestic offers currently stand at $1460-1540/ton for LLDPE film and at US$1370-1440/ton for HDPE film, all on an FD Indonesia, cash equivalent basis.