- Local and import prices recorded stable to softer
- Demand was on a slippery slope
- Demand is expected to pick up in November
According to the SSESSMENTS.COM database, the Vietnamese PET market showed a stable to softer trend during October. In the first week of the month, offers for localized PET Bottle of Taiwan origin slid between VND300,000-400,000/ton ($13-17/ton) compared to the final week of September. Moving to the second week, local PET Bottle offers edged down by VND1,600,000/ton ($69/ton) on a fortnight comparison. In the third week, local offers mostly captured at VND300,000/ton ($13/ton) lower compared to a week earlier. For local offers in USD denomination, transactions were successfully recorded at $900/ton on cash, FD Vietnam basis and excluding 10% VAT. In the following week, local PET Bottle offers in the domestic market showed a stable trend on a weekly comparison. In the final week of October, local offers dipped between VND100,000-300,000/ton ($4-13/ton) compared to the prior week.
Likewise, in the import market, SSESSMENTS.COM was informed that overall prices tracked a stable to softer trend throughout October. In the first week, import PET Bottle offers from China, Indonesia, and Taiwan surfaced with a reduction of between $20-30/ton. In the following week, import offers of China and Indonesia origin cargoes remained stable. Moving to the third week of October, import PET Bottle offers of Taiwan origin emerged in the market with no adjustment. For China and Indonesia origin cargoes, the offers edged down by $20/ton. As compared to the initial offer level, deals for both Chinese and Indonesian cargoes were concluded between $15-20/ton and $20-25/ton lower, respectively. In the second half of October, import PET Bottle offers from China and Indonesia via traders fell by $5/ton and between $10-15/ton, respectively. All offers were on a weekly comparison.
In general, SSESSMENTS.COM’s data showed that demand for PET Bottle in Vietnam stayed on a downward trajectory during October. A number of factors have contributed to the weak demand in the Vietnam PET market, including slow-sales for finished products, sufficient inventory levels and national campaign to reduce plastic bottle consumptions. As a result, some converters in Vietnam reduced the operating rate to around 50-60% of the normal capacity. Throughout October, no supply issues reported in the domestic and import market.
Entering November, the majority of Vietnamese market participants voiced that a further price cut is a viable option due to sluggish demand. Some sources expressed to SSESSMENTS.COM that the demand would pick up in early November in line with the preparation for the Tet Holiday (Vietnamese Lunar New Year).
*Buy idea was expressed before the offer received
Tags: Asia Pacific,English,EN PET Vietnam MSS,MonthlySSESSMENTS,Polyethylene Terephthalate (PET),Southeast Asia,Vietnam PET prices,Vietnam PET pricesNovember 29, 2019 4:39 PM