Supporting Factor Fades Away, Vietnamese PET Market Players Discouraged Demand To Pick Up During Peak Season
- Local PET offers stable, import offers decreased
- Sentiment has devolved into bearishness as demand fails to pick-up ahead of Tet
- Lacked confidence in the outlook, demand for PET recycle to be prominent
In Vietnam, PET market players feel discouraged that demand will pick up during the peak season as the supporting factor fades away. Over the week, local PET offers in the Vietnam market reported remain stable. In the import market, PET offers trended lower, continuing the same trend from a week earlier. China origin PET Bottle offers down by $10/ton, Thai by $15/ton, while Taiwan origin decreased between $10-20/ton, all compared to last week’s level. Despite the price reduction, a Chinese PET producer provides room for negotiation by $10/ton lower than the initial offer level. SSESSMENTS.COM noted that the decreases in PTA prices are the major ground of the downward price adjustment.
Demand reported remains sluggish as buying momentum for PET cargoes is tepid on the back of the downtrend. Uncertain market outlook, extended previous losses in PET prices and reluctance to take any risks in a volatile market has pushed buyers on the side-line in anticipation for a lower price. Due to the continuous downward price adjustment, some converters delayed production for Tet Holiday (Vietnamese New Year) preparation and keep purchasing on an as-needed basis. As compared to last year, the PET market this year is slower and quieter. On the supply front, no significant issues reported by market players to SSESSMENTS.COM.
Looking ahead, Vietnamese PET market players stated bearish outlook and PET prices still have room to go lower. While in terms of demand, market players predict that demand for PET recycle will outpace demand for virgin PET resins as manufacturers prefer using PET recycle for eco-friendly purposes, as stated to SSESSMENTS.COM.
Tags: Asia Pacific,English,EN PET VIETNAM WSS,Polyethylene Terephthalate (PET),Southeast Asia,Vietnam,WeeklySSESSMENTS PET prices,Vietnam PET pricesPublished on November 15, 2019 8:43 PM (GMT+8)
Last Updated on January 14, 2020 7:43 AM (GMT+8)