As most converters in Indonesia maintain low operating rates, PET demand remains a concern amid the current unpredictable market, the leading Indonesian PET producer told SSESSMENTS.COM. According to the producer, currently, most converters are still running at below 40% from normal production capacity. Due to this, the producer saw a drastic drop in demand for PET Bottle as compared to the same period last year, which leads to abundant inventory at the producer’s end.
In terms of offers, following the firmer PTA and MEG prices, the producer decided to adjust up both local and export PET Bottle offers by $20/ton from last week. However, SSESSMENTS.COM was told that no inquiries received from buyers so far. Most of them were only checking the prices without intention to purchase as their factories remain closed due to slow finished product demand. The producer expected buyers to start placing orders for June production by next week.
Coming to June, the producer opined to SSESSMENTS.COM that with no clarity whether the large-scale social restrictions (PSBB) in several big cities in Indonesia will be lifted or extended, demand outlook remains blurry. In contrast with demand, PET Bottle prices would be firmer onward as supported by strong feedstock prices. Moreover, more countries are expected to reopen and businesses will gradually recover.
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