quarterlyssessments-q1-2020-indonesia-pet-prices

Throughout January, SSESSMENTS.COM’s data showed that the local offers for PET Bottle in Indonesia were stable to increase between IDR100,000-400,000/ton ($6-25/ton) on a weekly comparison. While in February, the price movements were captured stable to softer between IDR200,000-300,000/ton ($12-18.5/ton) week-on-week. Moving to March, the local offers for PET Bottle were generally increased following the depreciation of Rupiah against the US Dollar. Sources stated that the most notable increment between IDR250,000-800,000/ton ($15-49/ton) was captured by the final week of March.

From the import market, import Chinese PET Bottle offers to Indonesia were generally stable during January and some deals were recorded at $20/ton lower from the initial offer level. However, no import offers recorded for Chinese PET Bottle in the final week of January due to the Lunar New Year holiday. In February, import Vietnamese PET Bottle offers were captured stable to decrease between $10-15/ton while the offers for PET Bottle of China origin were relatively stable week over week during the month. Moving to March, sources stated that on the beginning of the week commencing March 16, the offers for import PET Bottle of China origin trimmed around $25-35/ton from a week earlier. However, the offers decreased further by $25/ton on March 20 following further decreases in crude oil prices. To the export market, SSESSMENTS.COM noted that the offers on FOB basis were stable to decrease between $20-30/ton on week-on-week comparison during the quarter.

In general, PET demand in Indonesia recorded on a soft note during the first quarter of 2020 affected by several factors such as the rainy season, sufficient inventory on hand, slow sales for finished products as well as the intensified Coronavirus outbreak. By the final week of March, market activities recorded limited as market players start to work from home following the declaration for the state of emergency over the Coronavirus outbreak from the capital city of Indonesia. However, sources added to SSESSMENTS.COM that the demand for hand sanitizer bottles is striking amid the Coronavirus pandemic. On the production side, PT Indorama Polypet Indonesia planned to shut the company’s PET unit with a capacity of 8,400-8,500 tons/month for maintenance purposes on April 10 for around 4-7 days.

For the outlook, market players expressed an opinion to SSESSMENTS.COM that the movement of local PET Bottle offers in the near term will most likely depend on the currency exchange rate. While the demand is predicted to remain slow if the Coronavirus pandemic remains uncontrolled.

Range of local PET Bottle transactions in January on FD Indonesia basis, excluding 10% VAT in all terms

Origin	Transaction Type	Offers (IDR/ton)	Equivalent in USD/ton	Payment Term
Indonesia	Offer Given	12,700,000-13,500,000	784-833	Cash In Advance
Indonesia	Offer Received	12,200,000-13,500,000	753-833	Cash In Advance
Indonesia	Purchased	12,400,000-13,500,000	765-833	Cash In Advance
Indonesia	Sold	13,500,000	833	Cash In Advance
Indonesia	Offer Given	13,000,000-13,200,000	802-814	30 Days Credit Term
Indonesia	Offer Received	12,700,000-13,450,000	784-830	30 Days Credit Term
Indonesia	Purchased	13,200,000-13,500,000	814-833	30 Days Credit Term
Indonesia	Offer Received	12,800,000-13,500,000	790-833	60 Days Credit Term
Indonesia	Purchased	12,800,000-13,400,000	790-827	60 Days Credit Term

Range of import PET Bottle transactions in January on CIF Indonesia Main Port basis

Origin	Transaction Type	Offers (USD/ton)	Payment Term
China	Offer Given	870	LC at sight
China	Offer Received	855-860	LC at sight
China	Purchased	840	LC at sight
China	Offer Received	875	LC 90 days
India	Offer Received	860-870	LC at sight
Vietnam	Offer Received	880-890	LC at sight
Vietnam	Purchased	850	LC at sight
Vietnam	Offer Received	920	LC 120 days
Vietnam	Purchased	930	LC 120 days
Vietnam	Offer Received	905-915	LC 60 days

Range of export PET Bottle offers in January on LC at sight, FOB Indonesia basis

Origin	Transaction Type	Offers (USD/ton)
Indonesia	Offer Given	890-925

Range of local PET Bottle transactions in February on FD Indonesia basis, excluding 10% VAT in all terms

Origin	Transaction Type	Currency	Offers/ton	Equivalent on USD/ton	Payment Term
Indonesia	Offer Received	IDR	12,000,000-12,700,000	740-784	Cash In Advance
Indonesia	Purchased	IDR	11,800,000-12,500,000	728-771	Cash In Advance
Indonesia	Purchased	USD	910-920	-	Cash In Advance
Indonesia	Offer Received	IDR	12,900,000-13,700,000	796-845	30 Days Credit Term
Indonesia	Purchased	IDR	12,200,000-13,400,000	753-827	30 Days Credit Term
Indonesia	Offer Received	IDR	12,900,000-13,100,000	796-808	45 Days Credit Term
Indonesia	Purchased	IDR	12,900,000-13,100,000	796-808	45 Days Credit Term
Indonesia	Offer Received	IDR	13,300,000	821	60 Days Credit Term
Indonesia	Purchased	IDR	12,900,000-13,000,000	796-802	60 Days Credit Term

Range of import PET Bottle transactions in February on CIF Indonesia Main Port basis

Origin	Transaction Type	Offers (USD/ton)	Payment Term
China	Offer Given	810-850	LC at sight
China	Offer Received	800-840	LC at sight
China	Purchased	800	LC at sight
China	Offer Received	845	LC 60 days
China	Offer Received	850	LC 90 days
India	Offer Received	830-840	LC at sight
Vietnam	Offer Received	830-840	LC at sight
Vietnam	Purchased	840	LC at sight
Vietnam	Offer Received	840	LC 60 days
Vietnam	Offer Received	895-910	LC 120 days

Range of local/localized PET Bottle transactions in March on FD Indonesia basis, excluding 10% VAT in all terms

Origin	Transaction Type	Offers (IDR/ton)	Equivalent in USD/ton	Payment Term
Indonesia	Offer Given	12,600,000-12,700,000	777-784	Cash In Advance
Indonesia	Offer Received	12,200,000-13,600,000	753-839	Cash In Advance
Indonesia	Offer Received	12,900,000-13,950,000	796-861	30 Days Credit Term
Indonesia	Offer Received	13,000,000-13,700,000	802-845	45 Days Credit Term
Indonesia	Offer Received	12,600,000-13,700,000	777-845	60 Days Credit Term
Indonesia	Offer Received	14,000,000	864	90 Days Credit Term
Indonesia	Purchased	12,000,000-13,400,000	740-827	Cash In Advance
Indonesia	Purchased	12,900,000-13,450,0000	796-830	30 Days Credit Term
Indonesia	Purchased	13,000,000-13,700,0000	802-845	45 Days Credit Term
Indonesia	Purchased	13,000,000	802	60 Days Credit Term
Vietnam	Purchased	14,000,000	864	30 Days Credit Term

Range of import PET Bottle transactions in March, CIF Indonesia Main Port basis

Origin	Transaction Type	Offers (USD/ton)	Payment Term
China	Offer Given	720-840	LC at sight
China	Offer Received	790	LC at sight
China	Sold	720	LC at sight
Malaysia	Purchased	885	LC at sight
Vietnam	Offer Received	720-840	LC at sight
Vietnam	Bid Given	680	LC at sight
Vietnam	Offer Received	750	LC 120 days

Range of export PET Bottle offers in March on LC at sight, FOB Indonesia basis

Origin	Transaction Type	Offers (USD/ton)
Indonesia	Offer Given	800-880

QuarterlySSESSMENTS: Q1 2020 Indonesia PET Prices

Author: SSESSMENTS

QuarterlySSESSMENTS: Q1 2020 Indonesia PET Prices

Author: SSESSMENTS

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