Indonesia PET Market At A Standstill, Local Producers Set Same Pricing Strategy
- Local producers set same pricing strategy for this week
- No noticeable changes in demand observed
- Demand outlook remains blurry
As SSESSMENTS.COM noted, local PET producers in Indonesia set the same pricing strategy for this week. For the week commencing June 15, two local PET producers in Indonesia decided to maintain a stable offer level from a week earlier. One of the producers offered PET Bottle between IDR11,000,000-11,500,000/ton ($773-808/ton) and managed to conclude some deals at the initial offer levels while offers from another local producer captured at IDR10,750,000/ton ($755/ton). All on cash, FD Indonesia basis and excluding 10% VAT. On the other hand, offers from traders to local converters captured moving in different directions. Some converters received offers at IDR400,000/ton ($28/ton) lower from last week while some at IDR300,000/ton ($21/ton) higher. In the import market, a Chinese PET producer rolled over prices from a week earlier citing the relatively stable feedstock prices, offered at $720/ton on LC at sight, CIF Indonesia Main Port basis. Likewise, an Indonesian PET producer maintained export offers stable from last week.
Regardless of price movements or pricing strategy from sellers, Indonesia PET market is at a standstill. According to market sources contacted by SSESSMENTS.COM’s team, no noticeable improvement in demand observed over the week. Demand from the food and beverage sector remains slow while the hype from speculative buying for medical related-products has vanished. No significant issue in supply was reported by market players this week.
For the pricing outlook, local and foreign suppliers contacted by SSESSMENTS.COM indicated PET Bottle prices will be stable at the current level considering no sales pressure despite slow demand. In terms of demand, the near-term outlook remains blurry; majority of players could not see a clear picture citing the market is still in a recovery process amid the implementation of “new normal” policy.
