- 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)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Delivery Term | Delivery Location |
|---|
| Malaysia | Offer Received | MYR | 3,650-3,700 | 840-852 | FD | Malaysia |
| Malaysia | Purchased | MYR | 3,530-3,650 | 813-840 | FD | Malaysia |
| Thailand | Offer Given | THB | 27,000-27,500 | 823-838 | EXW | Thailand |
| Thailand | Offer Given | THB | 27,500-29,000 | 838-884 | FD | Thailand |
| Thailand | Offer Received | THB | 28,500-29,000 | 869-884 | FD | Thailand |
| China | Offer Received | THB | 28,500-29,000 | 869-884 | FD | Thailand |
| Thailand | Sold | THB | 28,500-29,000 | 869-884 | FD | Thailand |
Range of import PET Bottle transactions in January on LC at sight, CIF Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| China | Offer Received | 860-880 | Malaysia |
| China | Purchased | 860 | Malaysia |
| China | Offer Received | 870 | Myanmar |
| China | Offer Given | 850 | Philippines |
| China | Offer Given | 870 | Thailand |
Range of export PET Bottle transactions in January on LC at sight, FOB Thailand basis
| Origin | Transaction Type | Offers (USD/ton) |
|---|
| Thailand | Offer Given | 880-920 |
Range of local/localized PET Bottle transactions in February on FD basis (excluding VAT in all terms)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Payment Term | Delivery Country |
|---|
| Malaysia | Offer Received | MYR | 3,600-3,650 | 829-840 | Cash In Advance | Malaysia |
| Malaysia | Offer Received | MYR | 3,600-3,650 | 829-840 | 30 Days Credit Term | Malaysia |
| China | Offer Received | MYR | 3,600 | 829 | Cash In Advance | Malaysia |
| Malaysia | Purchased | MYR | 3,600 | 829 | Cash In Advance | Malaysia |
| Thailand | Offer Given | THB | 27,500-28,000 | 838-854 | Cash In Advance | Thailand |
| Thailand | Offer Received | THB | 27,500-28,000 | 838-854 | Cash In Advance | Thailand |
| China | Offer Received | THB | 27,800-28,500 | 847-869 | Cash In Advance | Thailand |
| Thailand | Sell Idea | THB | 27,500 | 838 | Cash In Advance | Thailand |
Range of import PET Bottle transactions in February on LC at sight, CIF Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Payment Term | Delivery Country |
|---|
| China | Offer Given | 830-840 | LC at sight | Malaysia |
| China | Offer Received | 810-825 | LC at sight | Malaysia |
| China | Purchased | 820 | LC at sight | Malaysia |
| Thailand | Offer Received | 910-920 | LC at sight | Malaysia |
| Thailand | Purchased | 890 | LC at sight | Malaysia |
| China | Offer Received | 830-840 | LC at sight | Myanmar |
| China | Offer Given | 800-840 | LC at sight | Philippines |
| China | Sold | 800 | LC at sight | Philippines |
| China | Offer Given | 840-850 | LC at sight | Thailand |
Range of export PET Bottle transactions in February on LC at sight, FOB Thailand basis
| Origin | Transaction type | Offers (USD/ton) |
|---|
| Thailand | Offer Given | 870-920 |
Range of local/localized PET Bottle transactions in March on cash, FD basis (excluding VAT in all terms)
| Origin | Transaction Type | Currency | Offers/ton | Equivalent in USD/ton | Delivery Country |
|---|
| Malaysia | Offer Given | MYR | 3,600 | 829 | Malaysia |
| Malaysia | Offer Received | MYR | 3,450-3,650 | 794-840 | Malaysia |
| Malaysia | Bid Received | MYR | 3,500 | 806 | Malaysia |
| Malaysia | Buy Idea | MYR | 3,500 | 806 | Malaysia |
| China | Offer Given | MYR | 3,500-3,650 | 806-840 | Malaysia |
| Thailand | Offer Given | THB | 25,500-27,500 | 777-838 | Thailand |
| Thailand | Offer Received | THB | 25,500-27,000 | 777-823 | Thailand |
| Thailand | Purchased | THB | 27,000 | 823 | Thailand |
| Thailand | Sold | THB | 25,500-27,000 | 777-823 | Thailand |
| China | Offer Received | THB | 25,800-28,200 | 786-860 | Thailand |
Range of import PET Bottle transactions in March on LC at sight, CIF Main Port basis
| Origin | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| China | Offer Received | 710-800 | Malaysia |
| Thailand | Offer Received | 780 | Malaysia |
| China | Offer Received | 775-820 | Myanmar |
| China | Offer Given | 700-820 | Philippines |
| China | Offer Given | 730-760 | Southeast Asia |
| China | Offer Received | 820 | Thailand |
| China | Offer Given | 720-840 | Thailand |
Range of export PET Bottle transactions in March on LC at sight, FOB Thailand basis
| Origin | Transaction Type | Offers (USD/ton) | Delivery Country |
|---|
| Thailand | Offer Given | 780-900 | Thailand |
| Thailand | Sold | 830-870 | Thailand |
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)
