Rainy Season Continues To Tamper PET Demand In Vietnam, Done Deals Limited
- Buyers reluctant to take import cargoes amid demand condition
- Most converters currently running at below 50% from normal capacity
- July will be the lean season for PET in Vietnam
As informed to SSESSMENTS.COM, the rainy season continues to tamper PET demand in Vietnam market. This week, local producers in Vietnam maintained stable offers for PET Bottle from last week. However, market talks have it that a local producer is offering PET cargoes at VND18,000,000/ton ($771/ton) on cash, FD basis and including 10% VAT, or VND800,000-1,000,000/ton ($34-43/ton) lower than offers from other producers. A local converter purchased PET cargoes at the same level to the initial offers at VND18,800,000/ton ($805/ton) on the same payment and delivery terms. On EXW basis, local PET offers stood at $710/ton. In the import market, offers for South Korean cargoes remain unchanged from last week. While for Indonesia and Thailand origins, the offers slightly increased by $5/ton on a weekly comparison. As for Chinese cargoes, a trader offered at $700/ton on LC at sight, CIF Vietnam Main Port basis. So far, no deals concluded yet for all import cargoes due to slow demand in the country. However, another trader does not have any offers for Chinese cargoes citing that the allocation has been fully booked.
PET demand in Vietnam continues to drop on the back of the rainy season in the country. Buyers are not in a position to make procurements amid the slow finished product demand; as such, deals for PET cargoes are limited. Moreover, due to the heavy rain in Southern areas last week, plastic bottles demand decreased drastically during the week. Most converters are currently running at below 50% from normal capacity. However, a local converter stated that demand for cosmetic PET Bottles is not affected by the weather and the production for these products is still running at full capacity. On the supply front, no significant issue was reported to SSESSMENTS.COM.
Market players opined that the outlook for PET market is not optimistic. Following the traditional pattern, July will be the lowest season for PET demand in Vietnam. Orders for finished products forecasted to drop by 50% during July. As such, room for local PET offers to increase is limited, as stated to SSESSMENTS.COM.
