- Price adjustment captured in the local market at the beginning of June
- Weather noted as the most influencing factor on demand for PET Bottle
- The current demand trend for PET Bottle resins expected to prolong
SSESSMENTS.COM noted that there were slight increment in the local and import market in the month of June, however, the momentum was short lived and PET prices generally stayed on the softer side. On the week commencing June 1, localized Chinese PET Bottle cargoes in Thailand decreased by THB100/ton ($3/ton) as compared to two weeks earlier on the back of appreciation of local currency against the U.S Dollar. In the following week, local PET Bottle prices in Malaysia increased between MYR30-100/ton ($7-23/ton), stood at MYR3,180/ton ($742/ton) on cash, FD basis and excluding 6% SST. The firm import offers of China origin noted as the major ground of upward price adjustment. On the week commencing June 15, a reduction of THB500/ton ($16/ton) on the low-end of the price range was captured in Thailand. Towards the final week of the month, localized Chinese PET Bottle cargoes in Thailand were available between THB250-500/ton ($8-16/ton) higher than the local cargoes. While in Malaysia, a reduction of MYR50/ton ($11/ton) on the high-end of the price range captured on local materials. All changes on week-on-week comparison. Detailed information for Indonesia and Vietnam market is available in MonthlySSESSMENTS of the respective countries.
In the import market, on the week commencing June 1 import PET Bottle offers of China origin to Malaysia decreased by $10/ton. While to the Philippines market, the offers of the same origin remained stable over the week, at $700/ton on LC at sight, CIF Philippines main port basis with deals concluded between $10-20/ton lower than the initial offer level. In the following week, import Chinese PET Bottle offers in Malaysia increased by $10/ton on the high-end of the price range, at $700-725/ton on LC at sight, CIF Malaysia main port basis. However, buyers’ acceptance level stood between $10-30/ton lower from the offers available in the market. In the last week of the month, Chinese PET Bottle cargoes in Thailand captured with a downward movement as SSESSMENTS.COM noted that the offers decreased by $10/ton. All changes on week-on-week comparison.
Rainy season was cited as the main reason behind the weak demand for PET Bottle in Southeast Asia during June, especially in the Thailand market. Added to that, the slow sales for the end product and sufficient inventory on hand also hindered converters from procurement activities and adjusted down the production rate. According to a Chinese PET producer, Southeast Asian buyers preferred to procure local cargoes over import materials. However, a slight improvement on demand for PET Bottle was captured on the week commencing June 15 in Thailand market. Some buyers were procuring small to medium volume at the initial offer levels. On the supply front, there were no significant issues reported by Southeast Asian market players to SSESSMENTS.COM.
Looking into July, PET prices in the region are expected to remain stable to slightly decrease as demand for the end products is not supporting any upward price adjustment. Demand will remain on the soft note during the rainy season in Southeast Asia in Q3, as stated to SSESSMENTS.COM.
