Southeast Asia PET Market Remained Flat As Rainy Season Hitting Hard Overall Demand
- Price movement captured across the region as players try to hype market
- PET demand in the region affected by the rainy season
- Local PET prices predicted to be stable with a slight chance to inch down
Southeast Asia PET market remained flat this week as the rainy season descended around the region. A converter in Thailand informed SSESSMENTS.COM that local PET Bottle offers stood at THB24,000/ton ($775/ton) on cash, FD basis and excluding 7% VAT this week, closing down gap by THB500/ton ($16/ton) on the low-end of the price range available last week. For localized cargoes from China, the converter told that prices were between THB250-500/ton ($8-16/ton) higher than local cargoes. In Malaysia, a local converter mentioned that offers were slightly lower from last week. Local offers edged down by MYR50/ton ($11/ton) on the high-end of the price range, while the low-end remained stable. For import cargoes, a Malaysian converter mentioned that a supplier offered Chinese PET Bottle cargoes at $705-710/ton with a downward revision of $5/ton from last week. To the Philippines and Thailand, import PET Bottle offers of China origin stood at $680-690/ton and $700-705/ton respectively. All import offers on LC at sight, CIF Main Port basis.
The responses toward PET offer is no better than last week with China traders reporting that PET Bottle demand from Southeast Asia remains consistently weak by far. While rain keeps coming and dampening overall demand, Thai converters pointed out that the competition for finished products market is still very fierce in their area. While in Malaysia, converters were triggered to cut production rate from now at 80-100% to be slightly lower from early July as demand curtailed. Converters throughout Southeast Asia contacted by SSESSMENTS.COM said that they do not have any plan to buy more materials in the near term. Detailed information for Indonesia and Vietnam market is available in WeeklySESSMENTS of the respective countries.
For outlook, PET prices around Southeast Asia predicted to remain stable or even slightly down as end-product demand cannot support any form of price increases, despite efforts to hype the market by sellers. Demand for end-products may also remain low while the rainy season hits Southeast Asia in Q3, as told to SSESSMENTS.COM.
