Vietnamese PET Buyers Skipped Procurement Activities Amid Shrinking Demand
- The number of deals was scanty as buyers not interested in buying
- Demand for PET resins moved in-tandem with end-products as an impact of weather condition
- Players foresee a high possibility for further price adjustments
The majority of Vietnamese buyers decided to skip procurement activities this week amid shrinking demand, particularly for finished products. On the week commencing July 13, SSESSMENTS.COM’s data showed that local and import PET Bottle offers in the Vietnam market recorded stable to softer. In the local market, a converter reported receiving offers from one of the Vietnamese PET producers in USD denomination at $10/ton lower than last week’s level, stood at $720/ton on LC at sight, CIF Ho Chi Minh Port. Deals managed to close at $10/ton lower than the initial offer level. From another local PET producer, the converter also received offers in US Dollar at $710/ton on the same payment and delivery terms, or $5/ton lower than a week earlier. In local currency, another converter received PET Bottle offers from a local producer at VND18,000,000/ton ($775/ton) on cash, FD Haiphong basis and including 10% VAT. No weekly comparison available but the offers were stable as compared to the level two months ago. In the import market, offers were scarce this week. There were only offers from a Chinese PET producer at $700-705/ton on LC at sight, CIF Vietnam Main Port basis, relatively stable on the week-on-week comparison.
This week, demand for PET resins continues to limp in-line with the weakening sales for converters’ end-products amid the rainy season. Although the rain intensity in some areas has subsided compared to last week, demand for finished products has decreased around 40-50% from last week. Even the government’s project in an attempt to boost the tourism sectors by giving out promotional attractive tour packages is still unable to lift market sentiment. On the other side, there is still another kind of end-product that the sales have improved within a month; which is PET trays. Converters who produce this product said that more orders were coming in this month on the back of the preparation for Mid-Autumn Festival. On the supply side, no significant issues reported to SSESSMENTS.COM this week.
Looking ahead, Vietnamese market players contacted by SSESSMENTS.COM believe that the chance for local and import PET prices to move further down remains high. Citing that demand for finished products predicted to remain slow at least until August owing to the rainy season, especially in northern Vietnam.
