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QuarterlySSESSMENTS: Q1 2020 SEA PET Prices

Author: SSESSMENTS

  • Consecutive decreases captured on local PET Bottle offers during Q1
  • Demand generally subdued except in Thailand
  • Slow PET market expected to prolong if Coronavirus issues linger

Based on the data collected by SSESSMENTS.COM, local PET Bottle prices within the Southeast Asia market were only firm in the first month of Q1. In January, a Thai PET producer was still able to make an upward price adjustment by THB500/ton ($16/ton). The producer was still trying to maintain the offers firm during February, and just made a price reduction of THB500/ton ($16/ton) in the first and fourth week of February. While in March, the producer was under pressure to trim the prices on the back of the plunge in crude oil prices and the slow demand. In March, the producer trimmed offers between THB500-1,000/ton ($16-32/ton) week by week. In Malaysia, the offers were mostly stable. A price reduction of MYR50/ton ($12/ton) captured in February and MYR100/ton ($23/ton) in March, due to slow demand. Detailed information for Indonesia and Vietnam market is available in QuarterlySSESSMENTS of the respective countries.

Likewise, in January, offers for import PET Bottle of China origin to Malaysia showed an increment of $30/ton. While export PET Bottle offers of Thailand origin on FOB basis increased between $20-30/ton. In February, offers for Chinese PET Bottle cargoes to Myanmar went down by $30/ton and by $10/ton on the low-end level of the price range to the Malaysia market. In March, the amount of price reduction for import Chinese PET Bottle cargoes was getting bigger. In general, Chinese PET Bottle prices to the Southeast Asia market were down between $25-45/ton. To the export market, Thai PET producers reduced offers by $40/ton in total during March, as noted by SSESSMENTS.COM.

The overall demand for PET Bottle in Q1 reported subdued, except in Thailand. Sufficient inventory on hand, buyers’ expectation for lower prices, slow end products demand and cloudy market outlook stemming from the Coronavirus outbreak noted as several factors dampened buying appetite. However, SSESSMENTS.COM noted that in January, demand for the end products was reported healthy in Thailand supported by the dry season in the country. In March, a Thai PET producer claimed that the dry season still supported demand for PET resins, although sales decreased by 15% as compared to February. On the supply front, there were no significant issues reported, except the delayed shipment for Chinese PET Bottle cargoes due to logistical constraints amid Coronavirus issue.

Looking into Q2, the majority of Southeast Asian PET market players stated to SSESSMENTS.COM that the slow market would prolong if the Coronavirus issues linger. As such, a chance for further downward price adjustment is widely open due to slow demand. 

Range of local/localized PET Bottle transactions in January on cash, FD/EXW basis (excluding VAT in all terms)

OriginTransaction TypeCurrencyOffers/tonEquivalent in USD/tonDelivery TermDelivery Location
MalaysiaOffer ReceivedMYR3,650-3,700840-852FDMalaysia
MalaysiaPurchasedMYR3,530-3,650813-840FDMalaysia
ThailandOffer GivenTHB27,000-27,500823-838EXWThailand
ThailandOffer GivenTHB27,500-29,000838-884FDThailand
ThailandOffer ReceivedTHB28,500-29,000869-884FDThailand
ChinaOffer ReceivedTHB28,500-29,000869-884FDThailand
ThailandSoldTHB28,500-29,000869-884FDThailand

Range of import PET Bottle transactions in January on LC at sight, CIF Main Port basis

OriginTransaction TypeOffers (USD/ton)Delivery Country
ChinaOffer Received860-880Malaysia
ChinaPurchased860Malaysia
ChinaOffer Received870Myanmar
ChinaOffer Given850Philippines
ChinaOffer Given870Thailand

Range of export PET Bottle transactions in January on LC at sight, FOB Thailand basis

OriginTransaction TypeOffers (USD/ton)
ThailandOffer Given880-920

Range of local/localized PET Bottle transactions in February on FD basis (excluding VAT in all terms)

OriginTransaction TypeCurrencyOffers/tonEquivalent in USD/tonPayment TermDelivery Country
MalaysiaOffer ReceivedMYR3,600-3,650829-840Cash In AdvanceMalaysia
MalaysiaOffer ReceivedMYR3,600-3,650829-84030 Days Credit TermMalaysia
ChinaOffer ReceivedMYR3,600829Cash In AdvanceMalaysia
MalaysiaPurchasedMYR3,600829Cash In AdvanceMalaysia
ThailandOffer GivenTHB27,500-28,000838-854Cash In AdvanceThailand
ThailandOffer ReceivedTHB27,500-28,000838-854Cash In AdvanceThailand
ChinaOffer ReceivedTHB27,800-28,500847-869Cash In AdvanceThailand
ThailandSell IdeaTHB27,500838Cash In AdvanceThailand

Range of import PET Bottle transactions in February on LC at sight, CIF Main Port basis

OriginTransaction TypeOffers (USD/ton)Payment TermDelivery Country
ChinaOffer Given830-840LC at sightMalaysia
ChinaOffer Received810-825LC at sightMalaysia
ChinaPurchased820LC at sightMalaysia
ThailandOffer Received910-920LC at sightMalaysia
ThailandPurchased890LC at sightMalaysia
ChinaOffer Received830-840LC at sightMyanmar
ChinaOffer Given800-840LC at sightPhilippines
ChinaSold800LC at sightPhilippines
ChinaOffer Given840-850LC at sightThailand

Range of export PET Bottle transactions in February on LC at sight, FOB Thailand basis

OriginTransaction typeOffers (USD/ton)
ThailandOffer Given870-920

Range of local/localized PET Bottle transactions in March on cash, FD basis (excluding VAT in all terms)

OriginTransaction TypeCurrencyOffers/tonEquivalent in USD/tonDelivery Country
MalaysiaOffer GivenMYR3,600829Malaysia
MalaysiaOffer ReceivedMYR3,450-3,650794-840Malaysia
MalaysiaBid ReceivedMYR3,500806Malaysia
MalaysiaBuy IdeaMYR3,500806Malaysia
ChinaOffer GivenMYR3,500-3,650806-840Malaysia
ThailandOffer GivenTHB25,500-27,500777-838Thailand
ThailandOffer ReceivedTHB25,500-27,000777-823Thailand
ThailandPurchasedTHB27,000823Thailand
ThailandSoldTHB25,500-27,000777-823Thailand
ChinaOffer ReceivedTHB25,800-28,200786-860Thailand

Range of import PET Bottle transactions in March on LC at sight, CIF Main Port basis

OriginTransaction TypeOffers (USD/ton)Delivery Country
ChinaOffer Received710-800Malaysia
ThailandOffer Received780Malaysia
ChinaOffer Received775-820Myanmar
ChinaOffer Given700-820Philippines
ChinaOffer Given730-760Southeast Asia
ChinaOffer Received820Thailand
ChinaOffer Given720-840Thailand

Range of export PET Bottle transactions in March on LC at sight, FOB Thailand basis

OriginTransaction TypeOffers (USD/ton)Delivery Country
ThailandOffer Given780-900Thailand
ThailandSold830-870Thailand

Tags: Asia Pacific,English,PET,Quarterly,SEA

Published on April 8, 2020 9:36 AM (GMT+8)
Last Updated on April 8, 2020 9:36 AM (GMT+8)