A Vietnam-based trader report to SSESSMENTS that offers for PET decreased by VND400,000/ton ($17/ton) compared to last week, at VND29,300,000/ton ($1,246/ton) on cash, FD Vietnam basis including 10% VAT. The trader stated that demand for virgin PET is just stable as demand for end products such as pesticides bottles, oil bottles and chilli sauce bottles is not picking up in the peak season. Meanwhile for water bottles and food-coated film are now made from 100% recycled PET, therefore demand for virgin resins for these products has drastically softened compared to last year. The trader added that demand from big water bottle companies could not offset the overall weakening demand.
As the tension between the US and Iran is increasing, the trader opined it would be difficult for crude oil to move even lower, so PET prices would not decrease drastically but stable in USD currency for the upcoming week. On the back depreciated Vietnamese Dong value against the US Dollar, the trader might adjust up offers by VND100,000/ton ($4/ton) next week.
