Indonesian PET Buyers Cited Factors To Trigger Price Adjustments
- Local offers recorded stable from last week
- Demand remains soft, no improvement in buying sentiment yet
- For several reasons, players foresee a possibility for downward price corrections
As contacted by SSESSMENTS.COM’s team, Indonesian PET buyers cited several factors that may trigger price adjustments. For the week commencing October 21, offers for local PET Bottle in Indonesia reported stable from a week earlier. The latest offers for cargoes from the leading PET producer in the country stand between IDR13,400,000-13,500,000/ton ($954-961/ton) on cash, FD Indonesia basis, and excluding 10% VAT. In the import market, deals for Chinese PET cargoes concluded at the same level to the initial offer, as the producer was not willing to go lower. For regional cargoes, deals for PET Bottle of Vietnam origin recorded at $885/ton on LC 90 days, CIF Indonesia main port basis. Compared to localized offers, such a level was deemed more attractive by buyers.
Demand for PET resins in the country remains soft this week, SSESSMENTS.COM noted. There is still no improvement in buying sentiment as expected by some market players would be seen after the presidential inauguration. Converters keep purchasing on an as-needed basis in anticipation of lower prices in the days to come. Likewise, demand for converters’ finished goods is waning over the week. On the supply side, the inventory level of local producers is reportedly high at the moment.
Most market players contacted by SSESSMENTS.COM believe that PET prices have chances to be corrected downward in the near term, considering the current inventory level of the local producers and decreases in MEG prices recently. Besides, no sign of improvement in demand for PET resins in the near future owing to the slow sales for finished products.
Tags: Asia Pacific,English,EN PET INDONESIA WSS,Indonesia,Polyethylene Terephthalate (PET),Southeast Asia,WeeklySSESSMENTS Indonesia PET prices,PET pricesPublished on October 25, 2019 6:25 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)