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MonthlySSESSMENTS: March Indonesia PET Prices

Author: SSESSMENTS

  • Local PET Bottle offers movement captured in a mixed direction
  • Striking demand reported for hand sanitizer bottle
  • Demand expected to increase following Eid Al-Fitr preparation

Due to the weakening of local currency against the US Dollar, local offers for PET Bottle increased by IDR600,000/ton ($36/ton) in the first week of March compared to a fortnight ago, SSESSMENTS.COM was told. Likewise, a local producer also increased PET Bottle offers between IDR300,000-550,000/ton ($18-33/ton) from a week earlier. On the week commencing March 9, one of the local producers decided to keep the offers stable while another local producer reduced the offers by IDR50,000/ton ($3/ton) from the previous week. Moving to the following week, a local producer trimmed PET Bottle offers by IDR100,000/ton ($6/ton) on weekly comparison. Contrastingly, another local producer increased the offers for PET Bottle by IDR200,000/ton ($12/ton) compared to the same period. By the final week of the month, local PET Bottle increased between IDR250,000-800,000/ton ($15-48/ton) owing to the depreciation Indonesian Rupiah against the US dollar. 

On a weekly comparison, SSESSMENTS.COM noted that downward adjustments were captured for import Chinese PET Bottle between $25-35/ton at the beginning of the week commencing March 16. The offers decreased further by another $25/ton on March 20. In the export market, an Indonesian PET producer reduced the offers by $30/ton compared to a week earlier in the second week of the month, offered at $800/ton on LC at sight, FOB Indonesia basis. 

In general, PET demand in Indonesia was recorded slow during March affected by some factors such as sufficient inventory on hand, slow demand for finished products, as well as Coronavirus outbreak. However, sources stated to SSESSMENTS.COM that the demand for hand sanitizer bottles was striking amid the Coronavirus outbreak. By the fourth week of the month, market activity reported limited as market players start to work from home as the capital of Indonesia declared a state of emergency over the Coronavirus outbreak. On the production side, PT Indorama Polypet Indonesia planned to shut the company’s PET unit with a production capacity of 8,400-8,500 tons/month for maintenance purposes on April 10 for around 4-7 days.

Looking ahead, market players opined to SSESSMENTS.COM that the movement of local PET Bottle in the near term will most likely depend on the currency exchange rate. While for the demand, it is predicted to remain slow in general as the Coronavirus pandemic still looms over.

Transaction for local PET Bottle between March 2 to March 6, FD Indonesia basis, excluding 10% VAT in all terms

OriginTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaOffer Given12,600,000-12,700,000756-762Cash In Advance
IndonesiaOffer Received12,500,000-13,200,000750-792Cash In Advance
IndonesiaOffer Received13,000,000-13,500,000780-81060 Days Credit Term
IndonesiaPurchased12,200,000-12,900,000732-774Cash In Advance
IndonesiaPurchased13,000,00078045 Days Credit Term

Transaction for import PET Bottle between March 2 to March 6 on LC at sight, CIF Indonesia Main Port basis

OriginTransaction TypeOffers (USD/ton)
ChinaOffer Given830-840
ChinaOffer Received790
MalaysiaPurchased885
VietnamOffer Received840

Transaction for export PET Bottle between March 2 to March 6 on LC at sight, FOB Indonesia basis

OriginTransaction TypeOffers (USD/ton)
IndonesiaOffer Given830-880

Transaction for local PET Bottle between March 9 to March 13, FD Indonesia basis, excluding 10% VAT in all terms

OriginTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaOffer Received12,200,000732Cash In Advance
IndonesiaPurchased12,000,000720Cash In Advance
IndonesiaOffer Received12,900,000-13,650,000774-81930 Days Credit Term
IndonesiaPurchased12,900,00077430 Days Credit Term
IndonesiaOffer Received13,000,000-13,200,000780-79245 Days Credit Term
IndonesiaOffer Received12,600,00075660 Days Credit Term

Transaction for import PET Bottle between March 9 to March 13 on LC at sight, CIF Indonesia Main Port basis

OriginTransaction TypeOffers (USD/ton)
ChinaOffer Received760-785
VietnamOffer Received820

Transaction for export PET Bottle between March 9 to March 13 on LC at sight, FOB Indonesia basis

OriginTransaction TypeOffers (USD/ton)
IndonesiaOffer Given800

Transaction for local PET Bottle between March 16 to March 20, FD Indonesia basis, excluding 10% VAT in all terms

OriginTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaOffer Received12,500,000-13,500,000750-810Cash In Advance
IndonesiaOffer Received13,000,000-13,500,000780-81030 Days Credit Term
IndonesiaOffer Received13,700,00082260 Days Credit Term
IndonesiaPurchased12,300,000-12,800,000738-768Cash In Advance
IndonesiaPurchased13,100,000-13,450,000786-80730 Days Credit Term

Transaction for import PET Bottle between March 16 to March 20 on LC at sight, CIF Indonesia Main Port basis

OriginTransaction TypeOffers (USD/ton)
ChinaOffer Given720-750
ChinaSold720
VietnamOffer Received750

Transaction for local/localized PET Bottle between March 23 to March 27, FD Indonesia basis, excluding 10% VAT in all terms

OriginTransaction TypeOffers (IDR/ton)Equivalent in USD/tonPayment Term
IndonesiaOffer Received13,200,000-13,600,000792-816Cash In Advance
IndonesiaOffer Received13,950,00083730 Days Credit Term
IndonesiaOffer Received13,700,00082245 Days Credit Term
IndonesiaOffer Received14,000,00084090 Days Credit Term
IndonesiaPurchased13,400,000804Cash In Advance
IndonesiaPurchased13,700,00082245 Days Credit Term
IndonesiaPurchased13,000,00078060 Days Credit Term
VietnamPurchased14,000,00084030 Days Credit Term

Transaction for import PET Bottle between March 23 to March 27, CIF Indonesia Main Port basis

OriginTransaction TypeOffers (USD/ton)Payment Term
VietnamOffer Received720-750LC at sight
VietnamOffer Received750LC 120 days

Transaction for local PET Bottle between March 30 to March 31 on cash, FD Indonesia basis, excluding 10% VAT in all terms

OriginTransaction TypeOffers (IDR/ton)Equivalent in USD/ton
IndonesiaOffer Received12,500,000-12,700,000750-762

Transaction for import PET Bottle between March 30 to March 31, CIF Indonesia Main Port basis

OriginTransaction TypeOffers (USD/ton)
VietnamOffer Received720
VietnamBid Given680

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

Published on April 2, 2020 1:02 PM (GMT+8)
Last Updated on April 2, 2020 1:02 PM (GMT+8)