- Several factors hampered buying sentiment for PET Bottle
- Indonesia’s Indorama delayed maintenance at PET Plant in Tangerang
- PTA prices expected to provide some support on PET prices in June
Local PET prices in the Indonesia market during May gradually increased week by week. On the week commencing May 4, local PET Bottle prices decreased between IDR350,000-400,000/ton ($25-28/ton) as compared to a week earlier. In the following week, the situation shifted as SSESSMENTS.COM noted that the offers on a cash basis were around IDR200,000-400,000/ton ($14-28/ton) higher. In the week commencing May 18, citing the upcoming Eid Al-Fitr, the leading Indonesian PET producer decided to maintain the offers for PET Bottle at a stable level from last week as the market is already in a holiday mood. While in the last week of the month, the leading Indonesian PET producer increased the offers by $20/ton as compared to a week earlier on the back of firmer PTA and MEG prices.
In the import market, in the week commencing May 4, offers for Vietnamese PET Bottle cargoes decreased by $20/ton. Price increment of $20/ton for import materials also captured on China PET Bottle cargoes within the week commencing May 18. In the export market, upward price adjustment of $20/ton on a weekly comparison was reported from the leading Indonesian PET producer in the last week of the month, as noted by SSESSMENTS.COM.
Demand for PET Bottle resins throughout May reported subdued. SSESSMENTS.COM was told that sufficient inventory on hand and slow demand for the end products hampered demand for PET Bottle resins. Besides, most of the converters halted the production activities due to Eid Al-Fitr holiday and just restarted at the end of May. Further explained, most orders were coming from hygiene and medical-related sectors, while demand from the food and beverage sector remained sluggish on the back of the Coronavirus outbreak. Meanwhile, hand sanitizer bottles are recyclable, as such, demand for the product is anticipated to shrink eventually. On the production front, Indonesia’s Indorama delayed maintenance shutdown at the company’s 8,400-8,500 tons/month PET plant to June. Initially, the producer scheduled the maintenance shutdown in April. However, the producer decided to delay due to difficulties in mobilization amidst the large scale social restriction. Further added by the producer, the maintenance shutdown will last for maximum a week and will not cause any supply disruption.
Looking into June, Indonesian market players expect that PET prices will be on a positive note and continuously moving upward as supported by PTA prices. Besides, as lockdowns in some countries have been eased, market conditions will slowly recover. However, taking into account sufficient inventory on Indonesian converters’ end, slow demand for the end products, and the large scale social distancing, demand is expected to remain tepid, SSESSMENTS.COM was told.
Transaction for local PET Bottle offers between May 1 to May 8, FD Indonesia basis (excluding 10% VAT in all terms)
| Origin | Transaction Type | Offers (IDR/ton) | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | Offer Given | 11,800,000-12,000,000 | 833-848 | Cash In Advance |
| Indonesia | Offer Given | 11,800,000-12,000,000 | 833-848 | 45 Days Credit Term |
| Indonesia | Offer Received | 12,700,000 | 897 | 30 Days Credit Term |
| Indonesia | Offer Received | 12,000,000-12,300,000 | 848-869 | 60 Days Credit Term |
| Indonesia | Offer Received | 11,400,000-11,600,000 | 805-819 | Cash In Advance |
| Indonesia | Purchased | 11,900,000 | 840 | 45 Days Credit Term |
| Indonesia | Purchased | 11,600,000 | 819 | 90 Days Credit Term |
Transaction for import PET Bottle offers between May 1 to May 8, CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Offer Given | 700 | LC at sight |
| China | Offer Received | 670 | LC at sight |
| Taiwan | Offer Received | 705-790* | LC 120 days |
| Vietnam | Offer Received | 700 | LC 120 days |
Description: *Special-grade materials
Transaction for export PET Bottle offers between May 1 to May 8, FOB Indonesia basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Indonesia | Offer Given | 740-745 |
Transaction for local/localized PET Bottle offers between May 11 to May 15, FD Indonesia basis (excluding 10% VAT in all terms)
| Origin | Transaction Type | Currency | Offers (IDR/ton) | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | Offer Received | IDR | 11,800,000-12,000,000 | 833-848 | Cash In Advance |
| Indonesia | Offer Given | USD | 750-760 | - | Cash In Advance |
| Indonesia | Sold | USD | 750-760 | - | Cash In Advance |
| Indonesia | Offer Received | IDR | 12,700,000 | 897 | 30 Days Credit Term |
| Indonesia | Offer Received | IDR | 14,000,000 | 989 | 90 Days Credit Term |
| Vietnam | Offer Received | IDR | 11,800,000 | 833 | Cash In Advance |
Transaction for import PET Bottle offers between May 11 to May 15 on LC at sight, CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 700-720 |
| China | Offer Received | 720 |
| China | Sold | 720 |
Transaction for local/localized PET Bottle offers between May 18 to May 22, FD Indonesia basis (excluding 10% VAT in all terms)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term |
|---|
| China | Offer Received | IDR | 11,895,000 | 840 | Cash In Advance |
| Indonesia | Offer Given | USD | 750-760 | - | Cash In Advance |
| Indonesia | Purchased | IDR | 11,250,000 | 795 | Cash In Advance |
| Indonesia | Offer Received | IDR | 11,200,000 | 791 | 90 Days Credit Term |
| Indonesia | Offer Received | IDR | 11,200,000 | 791 | 60 Days Credit Term |
| Indonesia | Offer Received | IDR | 12,000,000 | 848 | Cash In Advance |
Transaction for import PET Bottle offers between May 18 to May 22, CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Offer Given | 740 | LC at sight |
| China | Offer Received | 720 | LC 120 days |
| China | Offer Received | 740 | LC at sight |
| Taiwan | Offer Received | 720-800 | LC 120 days |
| Vietnam | Offer Received | 725 | LC 120 days |
Transaction for export PET Bottle offers between May 18 to May 22, FOB Indonesia basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Indonesia | Offer Given | 740 |
Transaction for local PET Bottle offers between May 25 to May 29, FD Indonesia basis (excluding 10% VAT in all terms)
| Origin | Transaction Type | Offers (IDR/ton) | Equivalent in USD/ton |
|---|
| Indonesia | Offer Given | 11,600,000-11,950,000 | 819-844 |
| Indonesia | Purchased | 11,400,000 | 805 |
Transaction for import PET Bottle offers between May 25 to May 29, CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| China | Offer Given | 720 |
Transaction for export PET Bottle offers between May 25 to May 29, FOB Indonesia basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Indonesia | Offer Given | 730-740 |
Tags: Asia Pacific,English,Indonesia,Monthly,PET,SEA
Published on June 5, 2020 10:22 AM (GMT+8)
Last Updated on June 5, 2020 11:14 AM (GMT+8)
