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Indonesian players gather at ChemOrbis Networking dinner

by ChemOrbis Editorial Team -
  • 25/11/2015 (03:23)
ChemOrbis’ Indonesia Networking Dinner was held at the Mulia Hotel in Jakarta, Indonesia on November 19, 2015, with the participation of more than 120 market players from Indonesia as well as other major Asian markets.

Mr. Zachary Moore, Assistant Manager of Market Intelligence at ChemOrbis, opened the meeting with his presentation on trends and opportunities in Indonesia’s polyolefin industry. Mr. Moore started his speech with an overview on Indonesia’s growing polyolefin markets, highlighting that demand for PP and PE has more than doubled over the past decade to nearly 3 million tons in 2015, with PP accounting for slightly over half of all polyolefin demand.

During his presentation, Moore talked about the recent developments in global olefin markets, stating that ethylene has started to restore its traditional premium over propylene thanks to recent investments in on-purpose propylene as well as coal-to-olefins technology.

Relating these developments to Indonesia’s polyolefin markets, Mr. Moore emphasized that homo-PP prices have regained competitiveness against PE prices over the past year owing to shifting olefin trends. “Thanks to its growing price competitiveness, PP has the potential to increase its market share relative to PE and PS, defying earlier expectations that PE would gain pricing power,” he commented.
Mr. Moore’s presentation was followed by a talk from Mr. Avdo Niksic, Chief Representative for Asia at ChemOrbis, titled, “If you Build it, They will come,” which gave an overview of major developments in global polymer markets. Mr. Niksic commented that over half of all the polymers traded within the Southeast Asian region and around 20-30% traded internationally cross borders.

Mr. Niksic also underlined strong demand growth in Indonesia while predicting that Indonesia’s healthy and growing domestic demand would support the continued expansion of the polymer industry. Mr. Niksic highlighted the Philippines as another market with significant growth potential for the coming years while commenting that Malaysia faced some obstacles to further growth due to relatively high domestic costs and stronger competition in global export markets.

Turning to the Chinese market, Mr. Niksic commented that the country is adding significant capacity for both PE and PP, adding that PE demand growth is outpacing capacity additions in the country while for PP, overseas suppliers are facing a loss of market share due to large new capacity additions in China.
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