- Local PET Bottle offers moved in different directions nearing the end of Q2 2020
- Overall PET demand remained on a soft note during the quarter
- Sluggish PET demand predicted to persist
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 |
Tags: Asia Pacific,English,Indonesia,PET,Quarterly,SEA
Published on July 10, 2020 9:51 AM (GMT+8)
Last Updated on September 21, 2020 1:17 PM (GMT+8)
