As contacted by SSESSMENTS.COM on July 24, a Malaysian PET producer cited factors determining the company’s pricing strategy. The producer mentioned that demand for PET in the country during July is better compared to June, but compared to the same period last year it is slower. The weak demand for PET Bottle is linked to the severely impacted drinking water and mineral water sector by people’s new habit of bringing tumblers for safety and health concern. Considering the demand and relatively stable crude oil as well as monomer prices, the producer kept offers to the domestic market unchanged compared to last week, available at MYR3,200/ton ($751/ton) on cash, FD Malaysia basis and excluding 6% SST.
In August, the producer expects PET prices to level off owing to limited movements in the upstream market coupled with rather unswerving prices in the China market. Regarding demand, the producer opined to SSESSMENTS.COM that improvements will continue to be seen, but overall demand will still be weak.
