Scanty Activity Observed In Indonesia’s PET Market Approaching Eid Al-Fitr Holiday
- Local and import PET Bottle offers showed diverse movement
- Indonesia’s PET market muted amid holiday mood
- PET demand predicted to remain weak after Eid Al-Fitr holiday
Scanty activity observed in Indonesia’s PET market as Eid Al-Fitr holiday is around the corner, SSESSMENTS.COM noted. On the week starting May 18, local and import offers for PET Bottle recorded stable to firmer. In the local market, the leading Indonesian PET producer decided to maintain the offers for PET Bottle at a stable level from last week as the market is already in a holiday mood. Besides, the producer predicts that there would be no fresh orders coming in within this week. On the other side, a manufacturer managed to secure five containers of PET Bottle from the leading PET producer at IDR11,250,000/ton ($763/ton) on cash, FD Indonesia basis and excluding 10% VAT. At the same time, the manufacturer also received offers from another local PET producer and localized cargoes of China origin, however, since both offers were considered too high, no deals concluded so far. In the import market, China PET Bottle offers surfaced with an increase of $20/ton on a weekly comparison. To the export market, PET Bottle offers from the leading Indonesian PET producer remain stable from last week.
Demand-wise, holiday mood apparently already looming in Indonesia’s PET market this week. As usually demand for PET resins was weak, now, the demand is getting weaker approaching Eid Al-Fitr holiday. For end-products, most orders are coming from hygiene and medical-related sectors, while demand from the food and beverage sector is still hampered by Coronavirus issues. As such, most converters in the food and beverage sectors are currently running production only at 60% from the normal rate. However, a palm oil manufacturer stated that sales from their end have improved around 20% compared to April; hence, they are running production at full capacity at the moment. On the supply side, no significant issues reported to SSESSMENTS.COM this week.
In the upcoming week, Indonesia’s PET market will be muted as players will be off for Eid Al-Fitr holiday, SSESSMENTS.COM was told. Coming to June, the majority of market players are still not sure about the market situation and could not comment about the outlook further. However, some of them mention that demand will remain slow by then.
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