Vietnamese PET Market Anticipate Demand Circumstances
- Buyers showed cold response towards import PET offers
- Domestic demand remains low as monsoon descended around Vietnam
- PET price adjustments in view considering demand outlook
Vietnamese PET market tries to anticipate the impact of low season demand which is happening right now. Market players informed SSESSMENTS.COM that fresh offers for local PET Bottle via a trader at VND18,590,000-19,100,000/ton ($796-818/ton), down by VND210,000/ton ($8/ton) on the low-end, whilst going up by VND300,000/ton ($12/ton) on high-end of the price range available a week ago. Meanwhile, buying idea is still holding at VND18,800,000/ton ($805/ton) following last week’s offer level. Even more interesting, one of the converters reported that the company have procured local PET Bottle cargoes at VND18,500,000/ton ($792/ton) at the end of last-week and feels not in need to buy this week. All local offers on FD basis and including 10% VAT. From the import market, a producer based in China reported that limited deals secured at low-level at $680/ton on CIF Vietnam as the market became more competitive these days. A trader revealed that China origin cargoes in their side are available at $695-700/ton, no comparison from last week as these cargoes were not available for a few weeks. The market responded coldly to this offer. Meanwhile, Indonesia and Thailand cargoes are not available in Vietnam this week in which according to trader happen because producers from both countries opted to aggressively sell to China.
Speaking about demand, converters shared to SSESSMENTS.COM that June demand for PET bottle decreased around 20-40% compared to May with the rain keeps pouring in Vietnam and hampered buying sentiment until this week. To circumvent reduction in demand, converters opted to diversify end-products or reducing production rate between 10-50% from the normal rate. Some converters also choose to concentrate their efforts for the export market which is improving slightly, especially European and Southeast Asia market. There were no reports of supply or production constraints from market participants this week.
Speaking about the outlook, market players anticipate prices for PET Bottle to be stable or slightly firmer in the near future as prices already at its lowest point at the traditional low season. SSESSMENTS.COM noted that market players are also trying to boost sentiment as virus situation in Vietnam is most likely considered to be out of the question.
