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MonthlySSESSMENTS: June Indonesia PET Prices

Author: SSESSMENTS

  • 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.

Range of local PET Bottle offers between June 1 to June 5 on cash/credit term on FD Indonesia basis, excluding 10% VAT in all terms

OriginTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment Term
IndonesiaOffer ReceivedUSD750-760-Cash In Advance
IndonesiaOffer ReceivedIDR11,810,00082030 Days Credit Term
IndonesiaOffer ReceivedIDR11,800,00081945 Days Credit Term
IndonesiaPurchasedIDR11,800,00081945 Days Credit Term
IndonesiaPurchasedIDR10,600,000736Cash In Advance

Range of import PET Bottle between June 1 to June 5 offers on LC at sight, CIF Indonesia Main Port basis

OriginTransaction TypeOffers (USD/ton)
ChinaOffer Given720
ChinaOffer Received705-710
VietnamOffer Received730-765

Range of local PET Bottle offers between June 8 to June 12 on credit term, FD Indonesia basis, excluding 10% VAT in all terms

OriginTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaPurchased11,300,00078430 Days Credit Term
IndonesiaOffer Received11,500,00079845 Days Credit Term

Range of import PET Bottle between June 8 to June 12 offers on LC at sight, CIF Indonesia Main Port basis

OriginTransaction TypeOffers (USD/ton)
ChinaOffer Given720
ChinaSold720

Range of local PET Bottle offers between June 15 to June 19 on FD Indonesia basis, all excluding 10% VAT

OriginTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaOffer Given11,000,000*-11,500,000**763-798Cash In Advance
IndonesiaSold11,000,000*-11,500,000**763-798Cash In Advance
IndonesiaOffer Received10,750,000746Cash In Advance
IndonesiaOffer Received11,000,000-11,900,000763-82630 Days Credit Term
Description: *FD Jakarta **FD Surabaya

Range of import PET Bottle offers between June 15 to June 19 on LC at sight, CIF Indonesia Main Port basis

OriginTransaction TypeOffers (USD/ton)
ChinaBid Given680
ChinaOffer Given700-720

Range of export PET Bottle offers between June 15 to June 19 on LC at sight, FOB Indonesia basis

OriginTransaction TypeOffers (USD/ton)
IndonesiaOffer Given740

Range of local PET Bottle offers between June 22 to June 26 on FD Indonesia basis, all excluding 10% VAT

OriginTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaOffer Given11,000,000-11,900,000763-826Cash In Advance
IndonesiaOffer Received10,600,000-11,600,000736-805Cash In Advance
IndonesiaOffer Received10,600,00073660 Days Credit Term
IndonesiaOffer Received11,000,00076390 Days Credit Term
IndonesiaPurchased10,400,000-11,000,000722-763Cash In Advance
IndonesiaPurchased11,630,000-11,720,000807-81330 Days Credit Term
IndonesiaSold11,000,000-11,500,000763-798Cash In Advance

Range of import PET Bottle between June 22 to June 26 offers, CIF Indonesia Main Port basis

OriginTransaction TypeOffers (USD/ton)Payment Term
ChinaOffer Given700-705LC at sight
VietnamOffer Received700-720LC at sight
TaiwanOffer Received730LC 120 Days
VietnamOffer Received735LC 120 Days

Range of export PET Bottle between June 22 to June 26 on LC at sight, FOB Indonesia basis

OriginTransaction TypeOffers (USD/ton)
IndonesiaOffer Given740

Tags: Asia Pacific,English,Indonesia,Monthly,PET,SEA

Published on July 2, 2020 4:37 PM (GMT+8)
Last Updated on July 2, 2020 4:37 PM (GMT+8)