Vietnam PET Market Battered As Bearish Factors Prevailed
- Local offers edged down by $15/ton from last week
- Deals for import PET cargoes of Taiwan origin concluded at $45/ton lower
- Near-term outlook remains unclear
SSESSMENTS.COM’s data showed that the Vietnamese PET market battered as bearish factors prevailed. In the domestic market, a local producer adjusted down local PET Bottle offers in USD-denomination by $15/ton as compared to last week. From the import market, a distributor initiated a price reduction of between $15-20/ton for China, Indonesia, and Thailand origin cargoes on a monthly comparison, while most traders maintained stable offer levels for Chinese and Taiwanese cargoes from last week’s levels. The price reduction was owing to the downtrend in crude oil prices last week and growing concern over Coronavirus issues. Similarly, the latest import offers from a South Korean producer edged down by $30/ton from last week. Responding to the offer level, some buyers submitted bids for Taiwanese PET cargoes at $45/ton lower than the initial offer level, or at $800/ton on LC at sight, CIF Vietnam Main Port basis. As the trader is having sales pressure, deals were concluded at the bids' level.
In general, demand in the Vietnam PET market is softening this week as Coronavirus fears intensified. The overall buying sentiment is weakening, weighed down by market players' concerns about how the spread of the lethal virus would affect the global market. Moreover, some converters are holding sufficient inventory on hand and prefer to keep the procurement on a need basis. On the production front, market talks have it that Paihong Co., Ltd plans to delay the start-up of its new PET plant. According to market sources report to SSESSMENTS.COM, the PET plant with a production capacity of 200,000 tons/year would only start operation by early April 2020. On the supply side, the availability of PET cargoes in the Vietnam market is sufficient at the moment.
For the outlook, SSESSMENTS.COM noted that the majority of market players in Vietnam remain unsure of the demand and price movement in the near term due to global headwinds and market uncertainty.
Tags: Asia Pacific,English,EN PET VIETNAM WSS,Polyethylene Terephthalate (PET),Southeast Asia,Vietnam,WeeklySSESSMENTS PET prices,Vietnam PET pricesPublished on March 6, 2020 11:22 PM (GMT+8)
Last Updated on March 7, 2020 2:53 AM (GMT+8)