Demand For Certain PET End Product Back To Normal After Previously Soared Amid COVID-19 Pandemic
- Local PET offers and import of Vietnam origin moved in the same trend, China took different path
- Some buyers skip procurements due to sufficient inventory
- Indonesia’s Indorama delayed maintenance at PET Plant in Tangerang
Demand for a certain PET Bottle end product has been back to normal after previously soared amidst C0VID-19 pandemic, SSESSMENTS.COM was told. As for the raw material, this week offers for local PET Bottle decreased further between IDR350,000-400,000/ton ($23-26/ton) compared to last week. Deals concluded with the leading Indonesian PET producer stood at IDR11,600,000/ton ($766/ton) on 90 days credit term, FD Indonesia basis and excluding 10% VAT. Likewise, import PET Bottle offers from Vietnam were adjusted down by $20/ton compared to the same period. Meanwhile, a Chinese PET producer rolled over last week’s levels.
The PET market in Indonesia remains quiet this week. Some buyers procure materials on a need basis while some skip procurements due to sufficient inventory for production up to the end of the month. Demand for end products is also slow. Demand for hand sanitizer bottles that was robust previously is now back to normal. Some hand sanitizer manufacturers were reported decreasing order volume. One of the local PET producers explained that hand sanitizer bottles are recyclable, hence demand for the product is anticipated to shrink eventually. On the production sector, SSESSMENTS.COM was informed that Indonesia’s Indorama delayed maintenance shutdown at Tangerang PET plant to June. The maintenance will last for maximum a week. Previously, the producer scheduled maintenance at the PET plant with a production capacity of 8,400-8,500 tons/month in April. The maintenance was delayed due to difficulties in mobilization amidst the large scale social restriction. The producer ensures that there will be no supply issue due to the maintenance later.
Looking ahead, some market players hope PET Bottle demand to improve in the near term as fasting month will be over. The players explained to SSESSMENTS.COM that end product sales dropped due to less consumption during fasting month. However, due to the shorter Eid Al-Fitr holiday, sales for some products, cookie jars for example, were unsatisfactory. Despite the demand is expected to improve soon, several sources are still hinging on lower prices up to the end of May. Ample inventory, lockdown in some cities as well as holidays taking place in May are the factors cited by players.
Click below to view related stories and content on PET:
NewsSSESSMENTS: Indonesia’s Indorama To Shut PET Plant For Maintenance
NewsSSESSMENTS: Vietnamese Traders Gained Momentum To Adjust Import China PET Offers Amid Labor Day Holiday
https://www.ssessments.com/newsssessments-zhejiang-petrochemical-starts-up-new-mega-cracker
WeeklySSESSMENTS: Indonesia PET Prices W/C April 27
Local PET Bottle offers on FD Indonesia basis and excluding 10% VAT in all terms
| Origin | Transaction Type | Offers (IDR/ton) | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | Offer Given | 11,800,000-12,000,000 | 780-793 | 45 Days Credit Term |
| Indonesia | Offer Received | 12,000,000-12,300,000 | 793-813 | 60 Days Credit Term |
| Indonesia | Offer Received | 11,600,000 | 766 | Cash In Advance |
| Indonesia | Purchased | 11,900,000 | 786 | 45 Days Credit Term |
| Indonesia | Purchased | 11,600,000 | 766 | 90 Days Credit Term |
Import PET Bottle offers on CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Offer Given | 700 | LC at sight |
| China | Offer Received | 670 | LC at sight |
| Taiwan | Offer Received | 705-790* | LC 120 days |
| Vietnam | Offer Received | 700 | LC 120 days |
Description: *Special-grade materials
Tags: Asia Pacific,English,Indonesia,PET,SEA,Weekly
Published on May 8, 2020 12:42 PM (GMT+8)
Last Updated on May 15, 2020 9:50 AM (GMT+8)
