Some Indonesian Converters Saw A Sudden Spike In Certain PET End-Products Demand
- Currency exchange rate supported local PET prices in Indonesia
- Demand on certain end-products shows a sudden spike
- Players foresee a blurry outlook for pricing and demand
Local PET Bottle prices in Indonesia captured stable to softer within the week commencing July 13. SSESSMENTS.COM was told that the depreciation of local currency towards the U.S Dollar has supported local PET prices to remain stable although prices in the global market are on a downtrend. Meanwhile, a local converter in the country reported receiving local PET Bottle offers at IDR900,000/ton ($61/ton) lower compared to last week’s level. While compared to deals concluded last week, the latest offers declined by IDR700,000/ton ($48/ton). Based on the SSESSMENTS.COM’s pricing database, last week’s offers were on a 30 days credit term, while this week’s offers are on a cash basis. In the import market, import PET Bottle offers from China, Taiwan, and Vietnam showed a reduction of between $5-15/ton during the same timeframe.
In terms of demand, sales for PET end-products for beverage bottles are reportedly healthy, while for hand sanitizer bottles and cosmetic purposes has slightly slowed down as compared to last week. On the other hand, some converters reported that there has been a sudden spike in demand for soy sauce bottles since two weeks ago from customers in West Java. However, the converters are unsure of the reason since this kind of situation has never taken place before, even nearing Eid Al-Adha. Supply-wise, no significant issues were reported by Indonesian market players to SSESSMENTS.COM this week.
Looking ahead, Indonesian market players stated it is hard to predict the PET price trend since the market has been very volatile lately. For the same reason, it is also difficult to predict demand trends, let alone the market is still in a recovery process, SSESSMENTS.COM was told.
Local PET Bottle offers, FD Indonesia basis, excluding 10% VAT in all terms
Import PET Bottle offers on LC 120 Days, CIF Indonesia Main Port basis
Tags: Asia Pacific,English,Indonesia,PET,SEA,Weekly
Published on July 17, 2020 12:59 PM (GMT+8)
Last Updated on July 17, 2020 12:59 PM (GMT+8)