- PET Bottle price trend in each Southeast Asia country during May varied, except for the first week
- Demand for the end products in Thailand was further weakened by the rainy season
- Some players believe PET Bottle prices in the Southeast Asia market will remain firm
SSESSMENTS.COM noted that PET Bottle price trends in each Southeast Asia country during May varied, except for the first week of the month. In the week commencing May 4, local PET prices in the Southeast Asia market were in a downtrend. In Thailand, local offers decreased by THB500/ton ($16/ton) while in Malaysia, the offers were adjusted down between MYR50-150/ton ($12-35/ton) compared to a week earlier. In the second and third week, local offers in the two countries were stable on a weekly comparison. However, in Thailand, deals could only be concluded between THB250-500/ton ($8-16/ton) lower than the initial offer levels. Meanwhile, local offers in Indonesia and Vietnam were on different trends. Offers for localized PET Bottle cargoes from China in the Thailand market surfaced in the third week with an increase of THB500/ton ($16/ton) also on a weekly comparison. In the week commencing May 25, local offers in most countries in the region were on an uptrend. In Thailand, the offers increased by THB500/ton ($16/ton) from the previous week, but there were deals concluded at THB500/ton ($16/ton) lower than the initial offer levels. In this particular week, local PET Bottle offers in Malaysia were unchanged compared to the same period.
From the import market, SSESSMENTS.COM was informed that offers from China were recorded stable in the week commencing May 4 and May 25. In the second week, diverse adjustments on offers for this origin were observed. In the Philippines, the offers were recorded stable to softer between $5-15/ton. On the other hand, offers to Malaysia increased by $5/ton. In the week commencing May 18, a Chinese PET producer adjusted up offers to the Southeast Asia market by $30/ton. However, market players in Malaysia reported that import offers from China to the country only increased by $20/ton. All changes were on a weekly comparison.
In general, demand for PET Bottle within the Southeast Asia market in May was sluggish despite lockdown relaxation in some countries. The COVID-19 outbreak still affected the end-product sales, hence, converters procured raw materials on a need basis or even held procurement activities. In Thailand, demand for the end products also weakened due to the rainy season. As for Malaysia, a bit of a different situation was reported in the second and third week of the month. Most converters in the country received orders as customers replenish stocks. However, in the third week, sales of food and beverage manufacturers started to slow down. No significant supply issues were reported to SSESSMENTS.COM within the month.
In terms of outlook, some market players opined to SSESSMENTS.COM that PET Bottle prices in the Southeast Asia market will remain firm on the back of firmer feedstock prices. Some other players predict that prices are likely to fluctuate at the current levels and significant price changes will not occur in the near term. However, demand will not be able to support continuous uptrend as the COVID-19 outbreak is not over yet.
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