Current PET Price Trend In Indonesia Remains Viable As End-Products Demand Lends A Hand
- Local PET Bottle offers established at the same trend as last week
- Demand for several end-products is considered robust
- Players foresee sustainability of current PET price trend
As SSESSMENTS.COM noted, the current PET price trend in Indonesia remains viable as end-products demand lends a hand. On the week starting July 6, local offers for PET Bottle in Rupiah denomination reported stable to firmer between IDR100,000-150,000/ton ($7-10/ton). Whereas in USD denomination, some converters reported receiving local PET Bottle offers from an Indonesian producer at $10-15/ton higher, available at $790-800/ton on cash, FD Indonesia basis and excluding 10% VAT. In the local currency, the offers are approximately equal to IDR10,800,000-11,500,000/ton-level depending on the number of purchases. All price changes compared to a week earlier. To date, some converters managed to close deals between IDR200,000-300,000/ton ($14-21/ton) lower from the initial offer levels. In the import market, some converters received offers for PET Bottle of China origin at a similar level to last week’s offers; which is $700/ton-level, but on a different payment term, CIF Indonesia Main Port basis. However, not any of them interested in taking the cargoes due to high risk of currency exchange coupled with sufficient inventory on hand.
By and large, demand for PET resins in Indonesia is still ongoing this week as supported by the end-products sales. At the moment, demand for end-products such as beverage bottles and other PET bottle applications is considered robust. Some converters stated that signs of improvement for these end-products had been observed since early June and the current sales are indeed much better compared to May. On the supply side, no significant issues reported to SSESSMENTS.COM this week.
Looking ahead, the majority of Indonesian market players contacted by SSESSMENTS.COM believe that domestic demand for PET end-products, such as beverage packaging, would remain strong onwards as the sales are likely not to be affected by the rainy season. Besides, Indonesia’s PET market is expected to become better in-line with the transition from large-scale social restrictions into “new normal” conditions. In terms of prices, players believe that local PET prices will be hovering at the current level in the upcoming week.
