- Price adjustment on the local PET prices in Vietnam only appeared at the beginning of the week
- Several factors hindered buyers from purchasing activities
- Bleak outlook for Vietnam PET market
SSESSMENTS.COM noted that adjustment on the local PET prices in Vietnam only appeared at the beginning of the month. On the week commencing June 1, on a weekly comparison a local trader increased the offers by VND300,000/ton ($13/ton). During the same time comparison, a PET producer in the country reduced the offers by VND600,000/ton ($26/ton) in order to maintain competitiveness. For the remaining of the month, there were no price changes noted in the Vietnam market. Due to the slow demand for the end products, local producers were unable to adjust up the offers even though crude oil prices showed increases. On the week commencing June 15, market talks have it that one of the local producers in the country was offering at VND18,000,000/ton ($771/ton) or between VND800,000-1,000,000/ton ($34-43/ton) lower than the offers from other producers. In the final week of the month, bids at VND300,000/ton ($13/ton) lower than the initial offer or at VND18,500,000/ton ($793/ton) had no response from suppliers. All offers are on cash, FD basis, and including 10% VAT.
In the import market, an upward price adjustment of between $5-30/ton captured in the Vietnam market during June. At the beginning of the week, import PET Bottle offers of Indonesia origin increased by $5/ton, Thai origin between $5-10/ton, $20/ton for South Korea origin, and between $10-20/ton for China origin. On the week commencing June 8, further upward price adjustment captured on Thai cargoes. Stood at $760/ton on LC at sight, CIF Vietnam main port basis, the offers surfaced with increases of $30/ton. In the following week, Indonesia and Thai cargoes were captured with another round of increases of $5/ton. All changes on week-on-week comparison. In the week commencing June 8, SSESSMENTS.COM noted that a local distributor received overwhelming requests for Chinese cargoes, however, the supplier was not able to meet the demand as the allocation was fully booked. In the final week of the month, Chinese PET Bottle cargoes emerged at the lowest level compared to other origins, at $700/ton on LC at sight, CIF Vietnam main port basis. Yet, no deals were concluded.
Demand for PET Bottle resins in Vietnam during June reported subdued on the back of several factors. The slow tourism industry due to the ban on foreign visitors in the midst of Coronavirus-19 pandemic has dampened demand for the end products. Besides, the rainy season and sufficient inventory on hand also noted as several factors that hindered buyers from procurement activities. During the rainy season, only demand for cosmetics-related that is not affected. On the production front, SSESSMENTS.COM noted that converters were running the production rate between 50-70% at the beginning of the month. However, in the final week of the month, the production rate reported running below 50% from the normal capacity.
Looking into July, Vietnamese market players foresee that demand for PET Bottle resins would decrease further. Based on the traditional pattern, July is the lowest season for PET demand in Vietnam. Hence, demand is predicted to decline around 50% during July, SSESSMENTS.COM was told.
Range of local PET Bottle offers between June 1 to June 5 on cash, FD Vietnam basis (including 10% VAT in VND term, excluding VAT in USD term)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton |
|---|
| Vietnam | Offer Given | USD | 720 | - |
| Vietnam | Offer Received | USD | 735-740 | - |
| Vietnam | Offer Received | VND | 18,700,000-19,000,000 | 728-740 |
| Vietnam | Purchased | VND | 18,700,000 | 728 |
Range of import PET Bottle offers between June 1 to June 5 on LC at sight, CIF Vietnam Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 730-735 |
| China | Offer Received | 730-735 |
| Indonesia | Offer Received | 760-765 |
| South Korea | Offer Given | 740 |
| Thailand | Offer Given | 730-740 |
| Thailand | Offer Received | 730-765 |
Range of local PET Bottle offers between June 8 to June 12 on cash, FD Vietnam basis (including 10% VAT in VND term, excluding VAT in USD term)
| Origin | Transaction Type | Currency | Offers | Equivalent in USD/ton |
|---|
| Vietnam | Offer Given | USD | 720 | - |
| Vietnam | Buy Idea | VND | 18,800,000 | 732 |
| Vietnam | Offer Received | VND | 18,800,000-19,200,0000 | 732-747 |
| Vietnam | Purchased | VND | 18,800,000 | 732 |
Range of import PET Bottle offers between June 8 to June 12 on LC at sight, CIF Vietnam Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 710-735 |
| China | Sold | 710 |
| Indonesia | Offer Given | 730 |
| Thailand | Offer Given | 730 |
| Thailand | Offer Received | 760 |
| Taiwan | Offer Given | 760 |
Range of local/localized PET Bottle offers between June 15 to June 19 on cash, FD Vietnam basis (including 10% VAT in VND term, excluding VAT in USD term)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton |
|---|
| China | Offer Received* | USD | 650-700 | - |
| Vietnam | Offer Received* | USD | 710 | - |
| Vietnam | Offer Given | USD | 720 | - |
| Vietnam | Offer Given | VND | 18,800,000 | 732 |
| Vietnam | Offer Received | VND | 18,800,000-19,000,000 | 732-740 |
| Vietnam | Purchased | VND | 18,800,000 | 732 |
Description: *Offers on EXW basis
Range of import PET Bottle offers between June 15 to June 19 on LC at sight, CIF Vietnam Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 700-710 |
| Indonesia | Offer Given | 725-730 |
| Indonesia | Offer Received | 725-730 |
| South Korea | Offer Given | 740 |
| Thailand | Offer Given | 725-730 |
| Thailand | Offer Received | 725-730 |
Range of local PET Bottle offers between June 22 to June 26 on cash, FD Vietnam basis (including 10% VAT in VND term, excluding VAT in USD term)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton |
|---|
| Vietnam | Purchased | USD | 770* | - |
| Vietnam | Offer Given | USD | 705-715 | - |
| Vietnam | Offer Received | VND | 18,800,000 | 732 |
| Vietnam | Bid Given | VND | 18,500,000 | 721 |
Description: *Offers on EXW basis
Range of import PET Bottle offers between June 22 to June 26 on LC at sight, CIF Vietnam Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 700-715 |
| Indonesia | Offer Given | 725-730 |
| Thailand | Offer Given | 725-730 |
| Thailand | Offer Received | 730 |
Tags: Asia Pacific,English,Monthly,PET,SEA,Vietnam
Published on July 3, 2020 12:57 PM (GMT+8)
Last Updated on July 3, 2020 1:00 PM (GMT+8)
