Local PET Price Movements In Indonesia Mixed
- Import offers were deemed uncompetitive compared to local offers
- Some converters also reduced purchasing quantity to maintain cash flow
- The current state of demand will remain seen in July
SSESSMENTS.COM noted that local PET price movements in Indonesia in the week commencing June 22 were mixed as suppliers applied different pricing strategies. Local PET Bottle offers via traders increased by IDR200,000/ton ($14/ton). On the contrary, offers from a local producer decreased by IDR250,000/ton ($17/ton). Some market players also reported stable PET Bottle offers, but there were deals concluded below the initial offer levels. All were compared to last week. From the import market, offers for PET Bottle from China, Taiwan and Vietnam were all unchanged from last week. However, buyers perceived the offers as uncompetitive compared to local offers. To export market, the leading PET producer maintained stable offers from last week at $740/ton on LC at sight, FOB Indonesia basis.
According to market players contacted by SSESSMENTS.COM, demand for PET Bottle is quite slow as buyers only procure materials as needed due to generally slow end-products sales and high inventory for raw materials as well as end-products. Some converters also reduced purchasing quantity to maintain cash flow. Pertaining to demand for hand sanitizer bottles, converters informed that despite decreasing, demand for the product is still considered good as the product can also be used for perfume containers. There were no supply issues reported this week. In the production sector, Indonesia’s Indorama revealed that the brief maintenance conducted at the company power plant in early June had finished and PET output at the moment is normal.
Considering the current PTA and MEG price movement, market players opine to SSESSMENTS.COM that PET Bottle price in the near future should be stable to firm. Pertaining to demand, the players predict that the current state of demand will remain seen in July.
