quarterlyssessments-q2-2020-indonesia-pet-prices

In April, local PET Bottle offers were recorded stable to softer by IDR500,000/ton ($35/ton) after the crude oil price crashed into negative territory on April 20. While in May, local PET Bottle offers decreased between IDR350,000-400,000/ton ($24-28/ton) compared to late April. However, according to SSESSMENTS.COM’s pricing database, a week later, local PET Bottle offers increased between IDR200,000-400,000/ton ($14-28/ton). At the end of May, after Eid Al-Fitr holiday, the leading PET producer increased the offers by $20/ton from a week earlier. In June, local PET Bottle offers in Indonesia moved in different directions. Some converters received local PET Bottle offers at IDR400,000/ton ($28/ton) lower. Contrastingly, some others received offers at IDR300,000/ton ($21/ton) higher. All on the week-on-week comparison. At the end of June, on the weekly comparison, traders increased PET Bottle offers by IDR200,000/ton ($14/ton), while a local producer decreased the offers by IDR250,000/ton ($17/ton) during the same timeframe.

From import, during April, PET Bottle offers of Vietnam origin moved down between $5-25/ton in total. Likewise, for Chinese cargoes, in the first half of April, the offers were captured around $30-40/ton lower compared to offers at the beginning of the month. However, due to the rebound in crude oil prices, the uptrend in prices and satisfactory sales in China domestic market, as well as tight supply from the supplier’s end, offers for Chinese PET Bottle cargoes surged by $10-40/ton in the second half of April. In May, a decrement of $20/ton was recorded for import Vietnamese PET Bottle cargoes. In contrast, offers for Chinese PET Bottle cargoes increased by the same amount. While in June, import PET Bottle offers were relatively stable owing to relatively stable feedstock prices. For the export market, SSESSMENTS.COM noted that PET Bottle offers from the leading Indonesian PET producer were mostly stable and available at $740/ton on LC at sight, FOB Indonesia basis in June.

Overall PET demand remained on a soft note during the second quarter of 2020. Sufficient inventory and slow finished product demand due to the COVID-19 outbreak were the reasons for sluggish PET demand in Indonesia. Healthy demand was only recorded for hygiene and medical-related products, such as hand sanitizer bottles amid the pandemic. However, as the hand sanitizer bottles are recyclable, the healthy demand did not last long. In June, despite the government started to implement “new normal” policy in several cities, which allowed offices and businesses to resume operations under safety guidelines, no improvement was seen in demand. On the supply side, no significant issue was reported to SSESSMENTS.COM. While on the production front, Indonesia’s Indorama shut the company’s 8,400-8,500 tons/month PET plant for maintenance work in early June. The plant brought back on-stream on the week commencing June 22. Previously, the producer planned to shut the plant in April, but delayed to June due to difficulties in mobilization amidst the large-scale social restrictions (PSBB).

Looking into the third quarter of 2020, Indonesian market players opined that PET Bottle offers will be stable to firmer following feedstocks price movements. However, sluggish PET demand condition predicted to persist in line with slow finished product demand, as stated to SSESSMENTS.COM.

Transactions for local PET Bottle in April on FD Indonesia basis (excluding VAT in all terms)

Origin	Transaction Type	Currency	Offers (IDR/ton)	Equivalent in USD/ton	Payment Term
Indonesia	Offer Given	IDR	11,800,000-12,700,000	818-880	Cash In Advance
Indonesia	Offer Received	IDR	12,300,000-13,000,000	853-901	30 Days Credit Term
Indonesia	Offer Received	IDR	12,400,000-12,700,000	860-880	60 Days Credit Term
Indonesia	Offer Received	IDR	11,950,000-12,750,000	828-884	90 Days Credit Term
Indonesia	Offer Received	IDR	12,000,000-13,500,000	832-936	Cash In Advance
Indonesia	Offer Received	USD	760	-	Cash In Advance
Indonesia	Purchased	IDR	12,800,000-13,000,000	887-901	30 Days Credit Term
Indonesia	Purchased	IDR	12,900,000-13,200,000	894-915	45 Days Credit Term
Indonesia	Purchased	IDR	12,400,000-12,600,000	860-873	60 Days Credit Term
Indonesia	Sold	IDR	12,000,000	832	30 Days Credit Term
Indonesia	Sold	IDR	12,500,000-12,600,000	867-873	60 Days Credit Term
Indonesia	Sold	IDR	11,800,000-12,450,000	818-863	Cash In Advance

Transactions for import PET Bottle in April on LC at sight, CIF Indonesia Main Port basis

Origin	Transaction Type	Offers (USD/ton)	Payment Term
China	Offer Given	680-720	LC at sight
China	Offer Received	710-720	LC 120 days
China	Offer Received	650-710	LC at sight
Malaysia	Offer Received	785	LC at sight
Taiwan	Offer Received	720-730	LC 120 days
Taiwan	Purchased	700	LC 120 days
Vietnam	Offer Received	720-745	LC 120 days
Vietnam	Offer Received	680-730	LC at sight

Transactions for export PET Bottle in April on LC at sight, FOB Indonesia basis

Origin	Transaction Type	Offers (USD/ton)
Indonesia	Offer Given	730-765
Indonesia	Sold	740-765

Transactions for local/localized PET Bottle in May on FD Indonesia basis (excluding VAT in all terms)

Origin	Transaction Type	Currency	Offers (IDR/ton)	Equivalent in USD/ton	Payment Term
China	Offer Received	IDR	11,895,000	825	Cash In Advance
Indonesia	Offer Given	IDR	11,800,000-12,000,000	818-832	45 Days Credit Term
Indonesia	Offer Given	IDR	11,600,000-12,450,000	804-863	Cash In Advance
Indonesia	Offer Given	USD	750-760	-	Cash In Advance
Indonesia	Offer Received	IDR	12,700,000	880	30 Days Credit Term
Indonesia	Offer Received	IDR	11,200,000-12,300,000	776-853	60 Days Credit Term
Indonesia	Offer Received	IDR	11,200,000-14,000,000	776-970	90 Days Credit Term
Indonesia	Offer Received	IDR	11,400,000-12,000,000	790-832	Cash In Advance
Indonesia	Purchased	IDR	11,900,000	825	45 Days Credit Term
Indonesia	Purchased	IDR	11,600,000	804	90 Days Credit Term
Indonesia	Purchased	IDR	10,900,000-11,400,000	756-790	Cash In Advance
Indonesia	Sold	USD	750-760	-	Cash In Advance
Vietnam	Offer Received	IDR	11,800,000	818	Cash In Advance

Transactions for import PET Bottle in May on LC at sight, CIF Indonesia Main Port basis

Origin	Transaction Type	Offers (USD/ton)	Payment Term
China	Offer Given	700-740	LC at sight
China	Offer Received	670-740	LC at sight
China	Offer Received	720	LC 120 days
China	Sold	720	LC at sight
Taiwan	Offer Received	705-800	LC 120 days
Vietnam	Offer Received	700-725	LC 120 days

Transaction for export PET Bottle in May on LC at sight, FOB Indonesia basis

Origin	Transaction Type	Offers (USD/ton)
Indonesia	Offer Given	730-745

Transaction for local PET Bottle in June on FD Indonesia basis (excluding VAT in all terms)

Origin	Transaction Type	Currency	Offers/ton	Equivalent in USD/ton	Payment Term
Indonesia	Offer Given	IDR	11,000,000*-11,900,000	763-825	Cash In Advance
Indonesia	Offer Given	IDR	11,200,000	776	30 Days Credit term
Indonesia	Offer Received	IDR	11,000,000-11,900,000	763-825	30 Days Credit Term
Indonesia	Offer Received	IDR	11,500,000-11,800,000	797-818	45 Days Credit Term
Indonesia	Offer Received	IDR	10,600,000	735	60 Days Credit Term
Indonesia	Offer Received	IDR	11,000,000	763	90 Days Credit Term
Indonesia	Offer Received	IDR	10,600,000-11,600,000	735-804	Cash In Advance
Indonesia	Offer Received	USD	750-760	-	Cash In Advance
Indonesia	Purchased	IDR	11,300,000-11,720,000	783-812	30 Days Credit Term
Indonesia	Purchased	IDR	11,800,000	818	45 Days Credit Term
Indonesia	Purchased	IDR	10,400,000-11,300,000	721-783	Cash In Advance
Indonesia	Sold	IDR	10,200,000-11,500,000*	707-797	Cash In Advance

Description: *FD Jakarta, **FD Surabaya

Transactions for import PET Bottle in June on LC at sight, CIF Indonesia Main Port basis

Origin	Transaction Type	Offers (USD/ton)	Payment Term
China	Bid Given	680	LC at sight
China	Offer Given	700-720	LC at sight
China	Offer Received	705-710	LC at sight
China	Sold	720	LC at sight
Malaysia	Offer Received	750	LC at sight
Taiwan	Offer Received	730	LC 120 Days
Vietnam	Offer Received	700-765	LC at sight
Vietnam	Offer Received	735	LC 120 Days

Transaction for export PET Bottle in June on LC at sight, FOB Indonesia basis

Origin	Transaction Type	Offers (USD/ton)
Indonesia	Offer Given	740

QuarterlySSESSMENTS: Q2 2020 Indonesia PET Prices

Author: SSESSMENTS

QuarterlySSESSMENTS: Q2 2020 Indonesia PET Prices

Author: SSESSMENTS

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