Coming Back From Eid Al Fitr Holiday, Indonesia PET Market Remains Idle
- There were limited transactions recorded this week
- There was a considerable gap between transactions on cash and credit term
- Market players expect better market activities next week
Coming back from the Eid Al-Fitr holiday, the Indonesia PET market remains idle. SSESSMENTS.COM was informed that there were limited transactions recorded this week. Offers from a local producer stood between $750-760/ton on cash, FD Indonesia basis and excluding 10% VAT. In the Rupiah denomination, some market players reported that offers from the largest PET producer in the country were available at IDR11,800,000/ton ($833/ton) on a 45 days credit term, FD Indonesia basis and excluding 10% VAT. Deals were concluded at the initial offer level. However, some others informed that local PET Bottle offers were below IDR11,000,000/ton level ($777/ton) for cash payment due to the appreciation of Rupiah. SSESSMENTS.COM noted that the gap between transactions on cash and credit terms reported by market players was IDR1,200,000-1,210,000/ton ($84-85/ton). For import cargoes, offers from a Chinese PET producer were unchanged compared to last week. Meanwhile, cargoes of Vietnam origin were offered between $730-765/ton on LC at sight, CIF Indonesia main port basis.
As the market is not fully resumed yet, demand for PET Bottle in Indonesia is considered slow. SSESSMENTS.COM was told that orders from buyers were limited. Some buyers prefer to wait on the sidelines and keep production at lower rates due to unclear market direction for both raw materials and finished products. Some converters which are having satisfactory sales of end products decided to run at full capacity. No significant supply issues were reported this week.
Coming to next week, market players believe that the PET market in Indonesia will be more active. Meanwhile, prices will be stable and firm at the current levels due to relatively stable feedstock prices, SSESSMENTS.COM was told.
