Handling Of Coronavirus Issues Will Determine PET Market Movement In Vietnam
- Import PET cargoes of China origin decreased by $30/ton
- A converter is running its production at below 50% from the normal rate
- Demand expected to remain slow if Coronavirus issues cannot be handled effectively, shortly
Vietnamese market players opined that the handling of Coronavirus issues would determine the movement of the PET market in the country, SSESSMENTS.COM was told. In the domestic market, most converters reported receiving offers for local PET Bottle cargoes at a stable level from last week and closed deals at the initial offer level at VND23,000,000/ton ($987/ton) on 10 days credit term, FD basis, and including 10% VAT. However, compared to local offers reported in last week’s WeeklySSESSMENTS, the offers received on cash basis captured lower by VND450,000/ton ($19/ton). From the import market, the offers for import PET Bottle of China origin decreased by $30/ton while for Indonesia origin remain stable from a week earlier. For Taiwanese cargoes, the offers captured at $830-840/ton on LC at sight, CIF Vietnam Main Port basis and such a level is still negotiable.
Demand for PET in Vietnam reported sluggish. As explained to SSESSMENTS.COM, the demand for finished products is slow and most converters already have sufficient inventory on hand. Moreover, the buying sentiment is still affected by Coronavirus issue. Therefore, if the issue is not handled effectively, it might continue to affect the market activities. A converter added that its operating rate is currently running below 50% from the normal capacity, and the company is unsure whether the traditional high season will happen this year considering the current market situation. On the supply side, there is no issue reported.
Looking ahead, market sources opined to SSESSMENTS.COM that the PET prices are predicted to move downward as the demand is expected to remain slow if the Coronavirus issue cannot be handled effectively and shortly. Meanwhile, other sources are unsure of the Vietnam market outlook and will keep an eye on the development in China and global market.
Tags: Asia Pacific,English,EN PET VIETNAM WSS,Polyethylene Terephthalate (PET),Southeast Asia,Vietnam,WeeklySSESSMENTS PET prices,Vietnam PET pricesPublished on February 15, 2020 12:42 AM (GMT+8)
Last Updated on February 15, 2020 6:19 PM (GMT+8)