Unclear Outlook Amid Market Volatility Led Indonesian PET Market Players To The Sidelines, Despite Implementation Of “New Normal”
- Deals for import Chinese PET Bottle cargoes concluded at the initial offer level
- Most buyers already have sufficient inventory on hand
- Players prefer the sideline position while monitoring market development
SSESSMENTS.COM was informed the unclear outlook amid market volatility led Indonesian PET market players to the sidelines despite the implementation of “new normal”. Compared to a week earlier, the offers for local PET Bottle cargoes captured lower by IDR300,000/ton ($21/ton). Some deals for local PET Bottle cargoes were concluded at IDR11,300,000/ton ($795/ton) on 30 days credit term, FD Indonesia basis, and excluding 10% VAT. Meanwhile, other players stated that the company did not receive fresh PET Bottle offers for the week commencing June 8. From the import market, the offers for import PET Bottle cargoes of China origin were kept stable on a weekly comparison, available at $720/ton with some deals concluded at the initial offer level. Import offers are on LC at sight, CIF Indonesia Main Port basis.
According to market sources reported to SSESSMENTS.COM, there is no significant improvement recorded for PET demand in Indonesia this week, despite the implementation of “new normal”. As noted, the Indonesian government has announced a new normal policy that was implemented on June 4. Following this policy, the government has allowed offices to resume activity by applying safety guidelines regarding COVID-19, while shopping malls will be allowed to reopen by June 15. On the supply side, there are no issues reported in the country.
Pertaining to the outlook, the majority of Indonesian market players stated that it would be difficult to predict the market movement owing to the market volatility. Although some cities in Indonesia already lifted the large-scale social distancing (PSBB) and implemented new normal, players remain unsure of the future plans due to the pandemic and its impact on the economic sector. As such, most players prefer the sideline position while continuing to monitor market development, SSESSMENTS.COM was told.
