The leading Indonesian PET producer informed SSESSMENTS.COM that currently, Indonesian buyers prefer to source PET materials from the local market instead of importing. According to the producer, the COVID-19 issue, as well as the rainy season had slowed down the market, leading to weak PET demand. As such, the producer is concern about the sales for this month. However, as buyers show resistance towards import cargoes considering the high prices after clearance and hedging cost, local offers are far more competitive.
In terms of pricing, local PET Bottle offers from the producer recorded stable to slightly firmer around IDR150,000-200,000/ton ($10-14/ton) on the weekly comparison following the higher monomer prices. While for export, the producer maintains stable offers from last week at $730-750/ton on LC at sight, FOB Indonesia basis. The producer added that the company does not have inventory pressure at the moment, but due to slow demand in the domestic market, the producer still has to move some cargoes to the export market. In the near term, PET Bottle prices expected to remain stable considering the relatively stable crude oil and feedstock prices. While for demand, the producer does not expect any significant improvement in this Q3 2020, SSESSMENTS.COM was told.
