SINGAPORE (ICIS)--Domestic polyethylene (PE) prices in Indonesia went down in the week amid persistently weak demand nearer to the Eid-ul Fitr holiday on 25 June, according to market sources on Wednesday.
Spot prices dropped week-on-week as the main local producer reduced its offers further to Rupiah (IDR) 15,580/kg DEL (delivered) Java (Indonesia) for linear low density PE (LLDPE) film and IDR 15,370/kg DEL Java for high density PE (HDPE) film grade as of Monday, 12 June.
Another producer also dropped its offers by IDR 300/kg for LLDPE film and IDR 100/kg DEL Java for HDPE film to IDR 16,300/kg and IDR 15,800/kg DEL Java respectively.
A source close to the producer said that trade had slowed due to muted demand amid uncertainty regarding falling import prices and a weak Chinese market.
Traders need to offer and conclude their deals at levels closer to the producers’ lower contract prices in order to move some cargoes, according to a major trader.
Most market participants opted to monitor the market and adopt a wait-and-see stance till a clearer price direction emerged.