Vietnamese PET Market Players Anticipate Price Adjustments Considering Demand Conditions
- Local and import PET offers exhibited the same trend
- Domestic demand remains lacklustre amid several influencing factors
- PET price adjustments in view considering demand outlook
Vietnamese PET market players anticipate price adjustments in the upcoming week considering demand conditions in the country, SSESSMENTS.COM noted. In the local market, some converters received local offers for PET Bottle via traders at a stable level on a weekly comparison. One of the converters decided to submit bids at VND18,500,000/ton ($790/ton) on cash, FD Vietnam basis and including 10% VAT, or VND300,000/ton ($13/ton) lower than the initial offer level, but no response from the trader so far. From imports, offers for PET Bottle of China, Indonesia, and Thailand origin were captured stable from last week’s levels. Among the three origins, the lowest offers were coming from China; which is at $700/ton on LC at sight, CIF Vietnam Main Port basis. However, no deals were captured for import cargoes until the time of publication.
As reported to SSESSMENTS.COM, domestic demand for PET resins remains sluggish this week. No improvement observed as buyers are still not in a position to make procurement due to sufficient supply on their hands coupled with end-products demand that has yet to pick up. Same as last week, pouring rain remains the prominent reason that dampened end-products sales; only demand for cosmetics-related that is not affected by the weather. Due to this, most converters are now running production at and below 50% from normal rate and expected to decrease again next week. Meanwhile, no significant supply issues were reported this week.
The majority of Vietnamese market players contacted by SSESSMENTS.COM believe that local PET prices will move down in the upcoming week considering the state of demand. Citing that July will be the lowest season for PET demand in Vietnam according to traditional patterns, demand is predicted to decline around 50% during July.
