- Local and import offers recorded on a downtrend during March
- Demand for PET slightly improve in the last week of the month
- Outlook for PET clouded by imminent spread of the novel coronavirus
Throughout March, SSESSMENTS.COM’s data showed that local offers for PET Bottle within the Vietnam market recorded on a downtrend. In the first week, a local producer applied downward adjustment for PET Bottle offers as much as $15/ton. While in the next week, offers from one of the Vietnamese PET producers decreased by $30/ton. On the week commencing March 16, another price decrease of $30/ton was made by a Vietnamese PET producer following the drop in the crude oil prices. Likewise, in the following week, local PET Bottle offers went slightly down again by $10/ton. All price changes were week over week comparison.
In the import market, offers for PET Bottle of China, Indonesia and Thailand origin from a distributor declined between $15-20/ton on a monthly comparison. Similarly, the latest import offers from a South Korean producer edged down by $30/ton from the previous week. Meanwhile, most traders maintained their offers stable from a week earlier for PET Bottle of China and Taiwan origin. All of that price reduction happened in the first week of March steered by the slump in crude oil prices and growing concern over the growing number of Coronavirus outbreaks. In view of the situation, buyers’ bids for Taiwanese PET cargoes at $45/ton lower than the initial offer level, or at $800/ton on LC at sight, CIF Vietnam Main Port basis were accepted and deals concluded at the bids’ level as the trader was facing sales pressure at that time. Moving to the week commencing March 9, Taiwanese PET Bottle cargoes dipped by $10/ton whereas Indonesian and Thailand cargoes dropped by $30/ton. All three compared to a week earlier level, SSESSMENTS.COM noted.
In the week commencing March 16, a local trader resumed to give offers for import Chinese PET Bottle cargoes at $760/ton on LC at sight, CIF Haiphong Port after being absent for a week. For Indonesian and Thai PET Bottle cargoes, the offers declined by another $15/ton over the week. A week after, a trader decided to lower the offers for PET Bottle of China, Indonesia, and Thailand origin by $10/ton. Despite the reduction, the trader acknowledged that their offers were still deemed too high compared to other suppliers, SSESSMENTS.COM was told.
During March, demand in the Vietnam PET market was generally sluggish, although a slight improvement in the final week of the month was reported. Overall, the buying sentiment was weighed down by growing concern over Coronavirus pandemic, sufficient inventory on-hand, and unclear market direction. However, a slight improvement in PET Bottle demand seen in the fourth week as the price levels deemed competitive by buyers. On the supply side, no significant issues reported to SSESSMENTS.COM throughout March.
In the upcoming month, market sources contacted by SSESSMENTS.COM stated that the outlook for PET market will remain gloomy if the Coronavirus pandemic remains uncontrolled.
