Southeast Asian Buyers Remain Uneager To Procure PET Cargoes Although Rooms For Negotiation Wide Open
- Import PET offers from China adjusted several times this week
- Demand for PET Bottle in the region is weak
- Market players predict that PET Bottle offers will be adjusted down
SSESSMENTS.COM was told that most Southeast Asian buyers remain uneager to procure local and import PET Bottle cargoes although rooms for negotiation are wide open. This week, local PET Bottle offers in Malaysia were stable while in Thailand were stable to decrease between THB500-1,000/ton ($16-31/ton) compared to last week. However, the offers were not firm as suppliers were willing to negotiate. Market players in Thailand mentioned that it was possible to conclude deals at THB23,000/ton ($725/ton) on cash, FD Thailand basis and excluding 7% VAT or THB500/ton ($16/ton) below the lower range of offer levels available in the market. Similarly, import PET Bottle offers from China to Malaysia were also not firm. At the beginning of the week, some players received offers of this origin at $695/ton on LC at sight, CIF Malaysia main port basis. On July 15, the offers decreased by $10/ton. As of July 16, the offers stood at $675/ton with the same payment and delivery terms after another downward adjustment of $10/ton was applied and the offers were still negotiable. Detailed information for Indonesia and Vietnam market is available in WeeklySESSMENTS of the respective countries.
Demand for PET Bottle in the region is weak as most buyers prefer to skip procurement activities due to slow end-product sales and sufficient inventory level. In Thailand, demand for end-products is dragged down by the rainy season. Pertaining to the production, a converter in Thailand keeps the factory running below 50% of the normal production rate. Similarly, a converter in Malaysia is running at 80% capacity this week, but the converter will reduce the rate in the next ten days after all orders are fulfilled. On the supply side, there are no significant issues reported to SSESSMENTS.COM.
In terms of outlook, market players contacted by SSESSMENTS.COM agreed that local and import PET Bottle prices will decrease in the near future due to weak demand. Some players even predict that downward adjustments will be applied as soon as the end of this week or the beginning of next week.
