The recent 5 months have become a great challenge for us. LLDPE Raw Material Price is increasing gradually. Furthermore, the shipping cost to many region has doubled 2 until 3 times. These are happening since Nov 2020, as can be seen from below chart:
Source: S&P Global Platts, 2021.
In addition, according to ChemOrbis Price Index data, LLDPE Price hits their highest levels since July 2015 (Chemorbis.com, 2021). We, as a manufacturer & supplier definitely would be very much love to provide our best pricing for our customers. However, we couldn’t deny those 2 external factors. This LLDPE increasing phenomenon happens worldwide, not only in Indonesia, but also in Europe, USA, UK & other region.
Some of our customers have expressed their concern regarding this increasing phenomenon. One thing for sure is that, we always try to give our best for our customers. The fact is many uncertainty things happen these days. For instance, the shortage of the material, crude oil increases up to USD 70/Barrel & Aramco Saudi been bombed.
Another point is the shortage of the material. Some distributors inform that they receive their raw material 20% from his regular quota. Furthermore, In US, S&P Global Platss also reported that LLDPE increases to its highest pricing on low supply (S&P Global Platts, 2021).
With this news, we’d love to inform that we still remain operational, have a good supply of LLDPE Raw Material & still serve our valued customers.
So, please believe in us during this uncertainty & challenging time. We believe that better days will come.
Tufan, M. 2021. Chemorbis.com. Quoted from https://www.chemorbis.com/en/plastics-news/LDPE-PP-prices-hit-all-time-highs-in-Europe/2021/03/08/811685&isflashhaber=true&onlyFreeNews=true#reportH
S&P Global Platts, 2021. Spglobal.com. Quoted from https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/012021-spot-us-lldpe-increases-to-highest-pricing-in-31-months-on-low-supply#article0