- Local PET Bottle offers increased significantly due to Rupiah depreciation
- PET demand was generally sluggish
- Local PET price trend would depend on the currency exchange rate
Throughout January, SSESSMENTS.COM’s data showed that the local offers for PET Bottle in Indonesia were stable to increase between IDR100,000-400,000/ton ($6-25/ton) on a weekly comparison. While in February, the price movements were captured stable to softer between IDR200,000-300,000/ton ($12-18.5/ton) week-on-week. Moving to March, the local offers for PET Bottle were generally increased following the depreciation of Rupiah against the US Dollar. Sources stated that the most notable increment between IDR250,000-800,000/ton ($15-49/ton) was captured by the final week of March.
From the import market, import Chinese PET Bottle offers to Indonesia were generally stable during January and some deals were recorded at $20/ton lower from the initial offer level. However, no import offers recorded for Chinese PET Bottle in the final week of January due to the Lunar New Year holiday. In February, import Vietnamese PET Bottle offers were captured stable to decrease between $10-15/ton while the offers for PET Bottle of China origin were relatively stable week over week during the month. Moving to March, sources stated that on the beginning of the week commencing March 16, the offers for import PET Bottle of China origin trimmed around $25-35/ton from a week earlier. However, the offers decreased further by $25/ton on March 20 following further decreases in crude oil prices. To the export market, SSESSMENTS.COM noted that the offers on FOB basis were stable to decrease between $20-30/ton on week-on-week comparison during the quarter.
In general, PET demand in Indonesia recorded on a soft note during the first quarter of 2020 affected by several factors such as the rainy season, sufficient inventory on hand, slow sales for finished products as well as the intensified Coronavirus outbreak. By the final week of March, market activities recorded limited as market players start to work from home following the declaration for the state of emergency over the Coronavirus outbreak from the capital city of Indonesia. However, sources added to SSESSMENTS.COM that the demand for hand sanitizer bottles is striking amid the Coronavirus pandemic. On the production side, PT Indorama Polypet Indonesia planned to shut the company’s PET unit with a capacity of 8,400-8,500 tons/month for maintenance purposes on April 10 for around 4-7 days.
For the outlook, market players expressed an opinion to SSESSMENTS.COM that the movement of local PET Bottle offers in the near term will most likely depend on the currency exchange rate. While the demand is predicted to remain slow if the Coronavirus pandemic remains uncontrolled.
Range of local PET Bottle transactions in January on FD Indonesia basis, excluding 10% VAT in all terms
| Origin | Transaction Type | Offers (IDR/ton) | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | Offer Given | 12,700,000-13,500,000 | 784-833 | Cash In Advance |
| Indonesia | Offer Received | 12,200,000-13,500,000 | 753-833 | Cash In Advance |
| Indonesia | Purchased | 12,400,000-13,500,000 | 765-833 | Cash In Advance |
| Indonesia | Sold | 13,500,000 | 833 | Cash In Advance |
| Indonesia | Offer Given | 13,000,000-13,200,000 | 802-814 | 30 Days Credit Term |
| Indonesia | Offer Received | 12,700,000-13,450,000 | 784-830 | 30 Days Credit Term |
| Indonesia | Purchased | 13,200,000-13,500,000 | 814-833 | 30 Days Credit Term |
| Indonesia | Offer Received | 12,800,000-13,500,000 | 790-833 | 60 Days Credit Term |
| Indonesia | Purchased | 12,800,000-13,400,000 | 790-827 | 60 Days Credit Term |
Range of import PET Bottle transactions in January on CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Offer Given | 870 | LC at sight |
| China | Offer Received | 855-860 | LC at sight |
| China | Purchased | 840 | LC at sight |
| China | Offer Received | 875 | LC 90 days |
| India | Offer Received | 860-870 | LC at sight |
| Vietnam | Offer Received | 880-890 | LC at sight |
| Vietnam | Purchased | 850 | LC at sight |
| Vietnam | Offer Received | 920 | LC 120 days |
| Vietnam | Purchased | 930 | LC 120 days |
| Vietnam | Offer Received | 905-915 | LC 60 days |
Range of export PET Bottle offers in January on LC at sight, FOB Indonesia basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Indonesia | Offer Given | 890-925 |
Range of local PET Bottle transactions in February on FD Indonesia basis, excluding 10% VAT in all terms
| Origin | Transaction Type | Currency | Offers/ton | Equivalent on USD/ton | Payment Term |
|---|
| Indonesia | Offer Received | IDR | 12,000,000-12,700,000 | 740-784 | Cash In Advance |
| Indonesia | Purchased | IDR | 11,800,000-12,500,000 | 728-771 | Cash In Advance |
| Indonesia | Purchased | USD | 910-920 | - | Cash In Advance |
| Indonesia | Offer Received | IDR | 12,900,000-13,700,000 | 796-845 | 30 Days Credit Term |
| Indonesia | Purchased | IDR | 12,200,000-13,400,000 | 753-827 | 30 Days Credit Term |
| Indonesia | Offer Received | IDR | 12,900,000-13,100,000 | 796-808 | 45 Days Credit Term |
| Indonesia | Purchased | IDR | 12,900,000-13,100,000 | 796-808 | 45 Days Credit Term |
| Indonesia | Offer Received | IDR | 13,300,000 | 821 | 60 Days Credit Term |
| Indonesia | Purchased | IDR | 12,900,000-13,000,000 | 796-802 | 60 Days Credit Term |
Range of import PET Bottle transactions in February on CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Offer Given | 810-850 | LC at sight |
| China | Offer Received | 800-840 | LC at sight |
| China | Purchased | 800 | LC at sight |
| China | Offer Received | 845 | LC 60 days |
| China | Offer Received | 850 | LC 90 days |
| India | Offer Received | 830-840 | LC at sight |
| Vietnam | Offer Received | 830-840 | LC at sight |
| Vietnam | Purchased | 840 | LC at sight |
| Vietnam | Offer Received | 840 | LC 60 days |
| Vietnam | Offer Received | 895-910 | LC 120 days |
Range of local/localized PET Bottle transactions in March on FD Indonesia basis, excluding 10% VAT in all terms
| Origin | Transaction Type | Offers (IDR/ton) | Equivalent in USD/ton | Payment Term |
|---|
| Indonesia | Offer Given | 12,600,000-12,700,000 | 777-784 | Cash In Advance |
| Indonesia | Offer Received | 12,200,000-13,600,000 | 753-839 | Cash In Advance |
| Indonesia | Offer Received | 12,900,000-13,950,000 | 796-861 | 30 Days Credit Term |
| Indonesia | Offer Received | 13,000,000-13,700,000 | 802-845 | 45 Days Credit Term |
| Indonesia | Offer Received | 12,600,000-13,700,000 | 777-845 | 60 Days Credit Term |
| Indonesia | Offer Received | 14,000,000 | 864 | 90 Days Credit Term |
| Indonesia | Purchased | 12,000,000-13,400,000 | 740-827 | Cash In Advance |
| Indonesia | Purchased | 12,900,000-13,450,0000 | 796-830 | 30 Days Credit Term |
| Indonesia | Purchased | 13,000,000-13,700,0000 | 802-845 | 45 Days Credit Term |
| Indonesia | Purchased | 13,000,000 | 802 | 60 Days Credit Term |
| Vietnam | Purchased | 14,000,000 | 864 | 30 Days Credit Term |
Range of import PET Bottle transactions in March, CIF Indonesia Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term |
|---|
| China | Offer Given | 720-840 | LC at sight |
| China | Offer Received | 790 | LC at sight |
| China | Sold | 720 | LC at sight |
| Malaysia | Purchased | 885 | LC at sight |
| Vietnam | Offer Received | 720-840 | LC at sight |
| Vietnam | Bid Given | 680 | LC at sight |
| Vietnam | Offer Received | 750 | LC 120 days |
Range of export PET Bottle offers in March on LC at sight, FOB Indonesia basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Indonesia | Offer Given | 800-880 |
Tags: Asia Pacific,English,Indonesia,PET,Quarterly,SEA
Published on April 9, 2020 6:35 PM (GMT+8)
Last Updated on April 9, 2020 6:37 PM (GMT+8)
