- Local and import PET offers moved on a diverse movement during June
- Domestic PET demand considered as slow in-line with end-products sales
- Cloudy outlook observed in domestic PET demand
During June, SSESSMENTS.COM’s data showed that local and import offers for PET Bottle in Indonesia captured in mixed directions. In the first week of June, the number of offers for PET Bottle in Indonesia market was still scarce as the market just returned from Eid Al-Fitr holiday. At that time, the gap between transactions for local PET Bottle on cash and credit terms was quite notable; which was around IDR1,200,000-1,210,000/ton ($83-84/ton). Moving to the second week, offers for local PET Bottle cargoes captured lower by IDR300,000/ton ($21/ton). Some deals for local PET Bottle cargoes were concluded at IDR11,300,000/ton ($784/ton) on 30 days credit term, FD Indonesia basis, and excluding 10% VAT. A week after, offers from two local PET producers in the country were on a stable level. However, there were some converters that received offers at IDR400,000/ton ($28/ton) lower while some at IDR300,000/ton ($21/ton) higher. On the week commencing June 22, local PET Bottle offers increased by IDR200,000/ton ($14/ton) from the traders’ end but decreased by IDR250,000/ton ($17/ton) from local producer’s end. Some market players also reported stable PET Bottle offers, with deals concluded below the initial offer levels. All offers were on a weekly comparison.
In the import market, offers from a Chinese PET producer were stable at $720/ton LC at sight, CIF Indonesia Main Port basis throughout June owing to the relatively stable feedstock prices. On the week starting June 15, some deals for Chinese cargoes were concluded at the initial offer level. At the same time, export offers from an Indonesian PET producer emerged at $740/ton on LC at sight, FOB Indonesia basis and remained stable for the rest of June. On the week commencing June 22, offers for import PET Bottle of China, Taiwan and Vietnam origins were all stable. All price changes on week-on-week comparison, SSESSMENTS.COM noted.
As the market did not fully resume yet in early June, demand for PET Bottle in Indonesia was considered slow. The number of deals was limited as buyers preferred to wait on the sidelines and kept the production low amid unclear market direction. Even after the implementation of “new normal”, which allowed offices and businesses to resume activity by applying safety guidelines regarding COVID-19, no improvement was seen in demand. The overall demand for PET resins in Indonesia during June was sluggish owing to the slow sales for end-products, sufficient inventory on converters’ end as well as reduced purchasing quantity from converters’ end to maintain cash flow. There were no supply issues reported during June. In the production sector, SSESSMENTS.COM was told that Indonesia’s Indorama underwent brief maintenance at the company power plant in early June. However, as reported on the week commencing June 22, the maintenance has completed and PET output was already normal.
Looking into July, the majority of market players contacted by SSESSMENTS.COM opined that local and import PET Bottle prices should be stable to firm considering the feedstocks prices. In the meantime, players predict that demand will likely to remain stagnant in the upcoming month amid lack of stimulus that could bolster market sentiment.
