Indonesia PET Market Remains Dull Despite Slight Improvement In Demand, Players Foresee Blurry Outlook
- Local PET Bottle offers recorded further adjustments
- Overall demand remains weak despite some improvement in finished product sales
- Players foresee blurry outlook amid dull market
Indonesian PET market remains dull despite a slight improvement in demand, most players contacted by SSESSMENTS.COM foresee blurry outlook onward. On the week commencing July 20, some converters reported receiving local PET Bottle offers at IDR250,000-300,000/ton ($17-20/ton) lower than last week’s level. On the other side, another converter also received local offers from an Indonesian PET producer at a stable level. The offers are available at IDR10,600,000/ton ($724/ton) on cash, FD Indonesia basis and excluding 10% VAT with deals concluded at IDR200,000/ton ($13/ton) lower than the initial offer level. In the import market, offers for PET Bottle of China and Vietnam origins remain stable from last week’s level. Additionally, a converter expressed their buy idea for Chinese PET Bottle cargoes at $660/ton on LC at sight, CIF Indonesia Main Port basis. Still, the converter has no plan yet in making procurement as they need to compare the prices with the local materials.
Demand-wise, buying sentiment within the Indonesia PET market is considered sluggish despite a slight improvement, particularly in several end-product demand. For PET resins, demand was hampered by sufficient inventory coupled with buyers’ stance in which they kept procuring on an as-needed basis. As for finished products such as mineral water bottles, the sales were recorded increased compared to a few weeks ago. On the production secor, some converters who produce mineral water bottles reported running production at around 70-80% from the normal output. No supply issues reported to SSESSMENTS.COM this week.
Looking ahead, the majority of market players contacted by SSESSMENTS.COM voiced out that they are rather unsure about the outlook regarding demand and price. Some players prefer to stay on a wait-and-see stance. While some others only hope that Indonesia PET market will be better in the near future.
