Local PET Bottle offers on cash, FD Ho Chi Minh basis (including 10% VAT in VND term, excluding VAT in USD term)
Import PET Bottle offers on LC at sight, CIF Port basis
Vietnam PET Market Faces Unprecedented Challenges Amid Seasonal Slowdown, Virus Resurgence
- Suppliers found difficulties in concluding deals, transactions remain limited
- Seasonal slowdown, virus resurgence held back sales
- Market players foresee no potential recovery in demand in the near term
Market players in Vietnam revealed to SSESSMENTS.COM that Vietnam PET market faces unprecedented challenges due to seasonal demand slowdown and growing concern over the second wave of coronavirus. In the domestic market, local producers and traders have been facing difficulties in concluding deals as the market entered its seasonal demand lull. Considering the pessimistic market conditions and an unprecedented drop in demand for end-products, most buyers are voicing out softer buying idea for local PET Bottle cargoes to producers below VND19,000,000/ton-level ($819/ton), ranging between VND18,500,000-18,800,0000/ton ($797-810/ton). Several buyers also received offers for producer’s cargoes via a small-scale supplier at VND18,800,000/ton ($810/ton), a rollover from two weeks earlier with deals concluded at the initial offer level. All offers are on cash, FD Ho Chi Minh basis and including 10% VAT. From the import market, most import offers are still hovering above $700/ton-level this week, ranging between $700-730/ton on LC at sight, CIF Vietnam Main Port basis. On a fortnight comparison, a Vietnamese PET distributor opted to roll over offers for Indonesia and Thailand origin cargoes, while deciding to adjust up their offers for Chinese origin cargoes by $5/ton from last week’s level. As buyers’ response remains lukewarm towards higher offers, the distributor only managed to sell small quantities of its China origin cargoes, around 1-2 containers so far.
SSESSMENTS.COM demand and supply database noted that Vietnam PET market continues to face downward pressure as an alarming resurgence of coronavirus cases and the onset of monsoon season in the country continue to put a cap on demand this week. Sources estimated that overall demand is down by 30% from last month, with weaker market conditions exacerbated by the seasonal slowdown and fears over the resurgence of coronavirus infections. In response to sour demand, converters are not actively stocking materials for production needs, preferring to purchase on a hand-to-mouth basis only. While others prefer to hold back purchases this week after securing sufficient volumes in the past few weeks. In the production sector, downstream factories are lowering their operating rates to match current demand conditions, mainly due to falling export and domestic orders. Sources revealed that production at several manufacturers is running at less than 90% of normal capacity. On the supply front, no disruptions to supply or shortages of the raw materials in the market were reported.
For the pricing outlook, Vietnam’s domestic and import PET prices are expected to be largely stable to slightly firm as prices have already bottomed out amid seasonal slowdown. Meanwhile, domestic demand is projected to take a long time to recover, dampened by traditional lean season and concerns over a resurgence of coronavirus outbreak.
Tags: Asia Pacific,English,Freemium,PET,SEA,Vietnam,Weekly
Published on July 10, 2020 1:53 PM (GMT+8)Last Updated on October 1, 2020 2:32 PM (GMT+8)
