Indonesia PET Market Swoon Amid Seasonal Slowdown, Coronavirus Outbreak
- Local offers were mostly stable
- Demand remains on a bearish note
- No supply issues reported
SSESSMENTS.COM’s data showed that Indonesia’s PET market swoon amid seasonal slowdown and coronavirus outbreak. In the domestic market, local PET Bottle offers were mostly stable from last week. However, a converter informed on receiving offers for local PET Bottle cargoes with a slight increase of IDR100,000/ton ($7.3/ton) on a weekly comparison. From the import market, no import offers for China origin cargoes available this week due to the Lunar New Year holiday. To the export market, a local trader is offering recycled PET Bottle cargoes at $800/ton on LC at sight, FOB Indonesia basis. This week, the number of inquiries and transactions is limited.
In general, demand for PET Bottle in Indonesia is showing a sign of waning this week. A number of factors have contributed to the weak demand conditions, including concern over Coronavirus outbreak and seasonal slowdown amid the rainy season. Currently, most market participants in Indonesia are cautious of the market movement as Coronavirus fears grip global market. However, demand for end-products is showing a mixed performance due to uneven rainfall in large parts of the country. Most converters mentioned that the rainy season continues to present challenges for end-products sales, while some claimed that sales from their end are slightly improving as the weather is getting warmer. On the supply front, the availability of PET cargoes in the market is sufficient at the moment, SSESSMENTS.COM was told.
For the outlook, Indonesian market players voiced out to SSESSMENTS.COM that PET demand in Indonesia will recover in February in line with preparation for Lebaran (Eid Al-Fitr) production. In terms of price, some market participants are holding back procurement activities in anticipation of lower prices in the near term.
Tags: Asia Pacific,English,EN PET INDONESIA WSS,Indonesia,Polyethylene Terephthalate (PET),Southeast Asia,WeeklySSESSMENTS Indonesia PET prices,PET pricesJanuary 31, 2020 2:34 PM